NAIROBI, Kenya, Jul 17 – Kenya’s Central banks’ monetary policy has held the benchmark lending rate at 10 percent as it seeks to anchor inflation expectations.
Overall month-on-month inflation declined to 9.2 percent in June 2017from 11.7 percent in May 2017, above the government band range of 7.5 percent as food prices decrease impacted by recent rains.
The 12-month current account deficit widened to 6.2 percent of GDP in May 2017, where as foreign exchange reserves are at $7.8 billion dollars which is 5.2 months cover of import cover.
MPC notes that the banking sector remains resilient and has shown improvement as commercial bank’s liquidity and capital adequacy ratio stood at 44.7 percent and 19.6 percent respectively.
However, the growth of credit to the private sector fell further to 2.1 percent over the 12 months to May 2017.
“The CBK will continue to closely monitor developments in the global and domestic economy and stands ready to take additional measures as necessary.