Kenya central bank holds rates for eighth time in a row
- The decision is the eighth consecutive hold by policymakers and it was in line with the consensus forecast in a Reuters poll of nine economists and market participants.
- The rate of inflation stood at 5.8% in April, well within the government's preferred band of 2.5%-7.5%.
NAIROBI: Kenya's central bank held its main lending rate at 7.0% on Wednesday, saying inflation was expected to remain within the target range.
The decision is the eighth consecutive hold by policymakers and it was in line with the consensus forecast in a Reuters poll of nine economists and market participants.
"The inflation rate is expected to remain within the target range in the near term, supported by lower food prices and muted demand pressures, despite the recent increase in fuel prices," the bank's Monetary Policy Committee (MPC) said in a statement.
The rate of inflation stood at 5.8% in April, well within the government's preferred band of 2.5%-7.5%.
The economy had experienced a fairly strong recovery in the first quarter, the MPC said, citing leading indicators.
"The economy is expected to rebound in 2021, also supported by improvement in the services sectors including education and the wholesale and retail trade, recovery in manufacturing, and stronger global demand," it said.
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