Kenya Maintains Main Lending Rate at 8.75 Percent

The Central Bank of Kenya maintained its benchmark lending rate at 8.75 per cent on Tuesday to counter economic pressures from the conflict involving Iran.

The decision matched the forecasts of economists polled by Reuters, who widely expected the monetary policy committee to hold the rate for the second consecutive meeting.

Recent fuel price hikes, triggered by surging global energy costs, drove Kenyan inflation up sharply during April and May.

Year-on-year inflation hit 6.7 per cent last month, closely approaching the upper limit of the government’s preferred 2.5 per cent to 7.5 per cent target range.

Kenya (News Central TV) — Kenya maintains the main lending rate at 8.75 per cent. Credit: Reuters

Due to these compounding headwinds, the central bank also lowered its economic growth forecast for the year to 4.9 per cent, down from its previous projection of 5.3 per cent.

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Abisoye Adeyiga

Abisoye Adedoyin Adeyiga holds a PhD in Languages and Media Studies and a Master’s in Education (English Language). Trained in digital marketing and investigative journalism, she is passionate about new media’s transformative power. She enjoys reading, traveling, and meaningful conversations.