Kenya Central Bank Boosts Interest Rate 175bps to 8.00%
The Central Bank of Kenya boosted the benchmark lending rate by a surprise 175 basis points to 8.00% from 6.25% previously, in a move designed to crackdown on double digit inflation and currency speculation. The Bank said: "This further tightening of the monetary policy stance will curtail second-round effects arising from fuel and maize prices and exchange-rate volatility that have been fueling inflationary expectations,".
Previously Kenya's central bank also increased the benchmark interest rate by 25 basis points at the end of last month to 6.25%. Kenya experienced inflation of 14.49% in June, up from 12.95% in May, compared to 12.05% in April and 9.19% in March, according to inflation data from the Kenya National Bureau of Statistics. The Central Bank of Kenya has an inflation target of 5 percent.