Wednesday, March 23, 2011

Central Bank of Kenya Lifts Rate 25bps to 6.00%

The Central Bank of Kenya increased the its lending rate by 25 basis points to 6.00% from 5.75% previously. The Bank noted that "this tightening will provide a solution to inflationary pressure and will stabilize the exchange rate while still protecting economic activity,". Kenya reported inflation of 6.5% in February, driven up by the surge in global energy and food commodity prices, with second round inflation effects starting to emerge. The Kenyan economy grew 5.4% in 2010, up from 2.6% in 2009 and 1.7% in 2008.


Post a Comment