Kenya's Central Bank Maintains Benchmark Rate amid Declining Inflation

Kamau Thugge, the CBK governor who chaired the Monetary Policy Committee (MPC) meeting in Nairobi, the Kenyan capital, said that overall inflation decreased to 5.7 percent in March from 6.3 percent in February, primarily due to lower food and fuel inflation.

"The MPC concluded that the current monetary policy stance will ensure that overall inflation continues to decline towards the 5.0 percent mid-point of the target range, and thus decided to retain the Central Bank Rate at 13.00 percent," Thugge said in a statement released in Nairobi.

The MPC acknowledged that its previous measures have helped lower inflation, address exchange rate pressures and anchor inflationary expectations. Thugge said that overall inflation is expected to continue declining in the near term, supported by lower food and fuel prices, as well as the pass-through effects of the recent exchange rate appreciation.

The MPC will closely monitor the impact of the policy measures, as well as developments in the global and domestic economy, and stands ready to take further action as necessary in line with its mandate, he added.

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