Kenya Central Bank holds main lending rate at 9.5 per cent

Kenya’s central bank held its benchmark lending rate at 9.5 per cent on Monday, saying the impact of the previous cut was yet to be fully felt.

The bank cut the rate by 50 basis points at the last sitting of its monetary policy committee in March, saying the economy needed a boost.

“The committee assessed that the policy action at its March meeting was yet to be fully transmitted to the economy, including a determination of any perverse outcomes,” it said in a statement.

Inflation, which slowed to 3.73 per cent last month, was well anchored within the government’s preferred band of 2.5 to 7.5 per cent, the bank said, adding that economic output was still below its potential level.