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Kenya's central bank maintains key lending rate at 11.5%

Kenya's central bank maintains key lending rate at 11.5%

Kenya

The Central Bank of Kenya has maintained the benchmark lending rate at 11.5% for the fifth time in a row, in a move largely in line with market expectations.

According to a statement released by the bank’s Monetary Policy Committee (MPC), Kenya’s economy remained stronger in the third quarter of 2015, posting a growth rate of 5.8% compared to 5.2% in 2014.

The CBK will continue to use the instruments at its disposal to maintain overall price stability while ensuring stability in the financial sector.

The bank also highlighted the stability of Kenya’s foreign exchange market which is buoyed by a narrowing current account deficit despite the recent rise in US interest rates, slowed economic growth in China and volatility in global financial markets.

“The CBK will continue to use the instruments at its disposal to maintain overall price stability while ensuring stability in the financial sector,” said a statement signed by MPC chairman CBK Governor Patrick Njoroge.

Additionally, the committee remains optimistic about Kenya’s economic growth in 2016 despite expectations that global economic growth is likely to be uneven across advanced and emerging economies.

The bank also maintained Kenyan Banks’ Reference Rate (KBRR) at 9.87 percent.

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