Kenya's central bank raises benchmark rate to 8.25 pct-Xinhua

Kenya's central bank raises benchmark rate to 8.25 pct

Source: Xinhua| 2022-09-29 23:43:45|Editor: huaxia

NAIROBI, Sept. 29 (Xinhua) -- The Central Bank of Kenya (CBK) on Thursday raised its benchmark lending rate from 7.50 percent to 8.25 percent amid rising inflation.

CBK Governor Patrick Njoroge, who chaired the Monetary Policy Committee (MPC) meeting in Nairobi, Kenya's capital, noted that sustained inflationary pressures on the domestic economy mean that there was scope for tightening of the monetary policy to further anchor inflation expectations.

"The committee will closely monitor the impact of the policy measures, as well as developments in the global and domestic economy, and stands ready to take additional measures, as necessary," Njoroge said in a statement.

He said that the overall inflation is expected to remain elevated in the near term, due in part to the scaling down of the government price support measures, resulting in increases in fuel and electricity prices, the impact of tax measures in the 2022/23 financial year budget as well as global inflationary pressures.

The MPC meeting was held against a backdrop of significant global uncertainties, volatile financial markets, a weaker growth outlook, persistent inflationary pressures, geopolitical tensions, lingering effects of the COVID-19 pandemic, and measures taken by authorities around the world in response to these developments.

The MPC said that it also reviewed the outcomes of its previous decisions and measures implemented to mitigate the adverse economic impact and financial disruptions.