Kenya: Apex bank retains lending rate at 10 per cent
Benchmark interest rate was left unchanged amid minimal inflationary pressuresThe Central Bank of Kenya's Monetary Policy Committee during its bimonthly meeting yesterday left the key lending rate unchanged at 10 per cent. Since inflation is expected to remain within the government's target range of between 2.5 and 7 per cent, the MPC said the rate needed no further action. In a statement, the Governor of the Central Bank, Patrick Njoroge said "given the prevailing domestic and global economic uncertainties and the need for more conclusive information on development, the MPC decided to retain the Central Bank Rate. Inflation rate in Kenya rose to 6.47 per cent in October 2016 from 6.34 per cent a month earlier due to increase in cost of food and non-alcoholic drinks, water, electricity and gas. In September, the Central Bank cut borrowing cost by 50bps which kept it at 10 per cent.