Kenya cuts rates on anchored inflation and tight fiscal outlook

Patrick Njoroge
www.junosnowdon.co.uk

The Central Bank of Kenya reduced interest rates by 50 basis points today (November 25) in a bid to offset the tight fiscal policy implemented by the government.

As a result, the central bank rate is now at 8.5%. The looser policy approach is possibly due to what policy-makers view as anchored inflation expectations. In October, year-on-year inflation was recorded at 4.9%. The central bank’s goal is for prices to rise annually by 5%, within a +/–2.5% range.

“Overall, inflation is expected to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: