The Central Bank of Kenya (CBK) has maintained its base lending rate at 9.5 per cent after inflation dropped last month.

CBK’s Monetary Policy Committee (MPC) said on Monday that the tightening of monetary policy in March 2023 to anchor inflation showed some improvement in the economy.

It also added that the government’s move to allow duty-free importation of certain food items, such as sugar, will ease inflationary pressure.

MPC Chairman Patrick Njoroge said that the Committee will closely monitor the impact of the policy measures and developments in the global and domestic economy and is ready to take additional measures.

 “The Committee will meet again in July 2023, but remains ready to reconvene earlier if necessary.”

Did you read this?

  1. CBK Cuts Benchmark Lending Rate to 11.25%, Urges Banks To Lower Borrowing Costs
  2. I&M Bank Reduces Lending Rate By 0.75% To Promote Credit Access
  3. Parliament Approves Gerald Nyaoma As CBK Second Deputy Governor

The rate retention came after overall inflation declined to 7.9 per cent last month from 9.2 in March.

Similarly, food inflation dropped 10.1 per cent from 13.4 per cent in the review period.

The cooling of inflation is attributed to lower prices of vegetables boosted by ongoing rains and an improved supply of select non-vegetable food items.

“The Survey of the Agriculture Sector conducted in the first half of the month, revealed that the prices of key food items had declined,” MPC added.