Nairobi cityscape – capital of Kenya, East Africa
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The Central Bank of Kenya cut its benchmark lending rate by 25 basis points to 12.75% on Tuesday, saying there was room to gradually relax its policy stance while ensuring continued exchange rate stability.
“The Monetary Policy Committee noted that previous measures had reduced headline inflation to below the midpoint of the target range, stabilizing the exchange rate and anchoring inflation expectations,” the central bank said in a statement.
“The Monetary Policy Committee will closely monitor the impact of policy measures and global and domestic economic developments and be prepared to take further action as necessary in accordance with its mandate,” it added.
The rate cut came after two monetary policy meetings in which the central bank left interest rates unchanged.
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