NAIROBI (Xinhua) --
Kenya’s central bank on Monday retained
its benchmark rate at 10 percent due to increased
optimism for growth prospects in the economy.
Njoroge, who heads the Central Bank of Kenya (CBK) and
the country’s Monetary Policy Committee (MPC), said
there is some room for accommodative monetary policy in
the near term, as well as the risk of perverse outcomes.
committee concluded that there was need to further
monitor and assess the impact of its policy actions. The
MPC therefore decided to retain the Central Bank Rate (CBR)
at 10 percent,” Njoroge said in a statement released in
an MPC meeting was held against a backdrop of sustained
macroeconomic stability, increased optimism on the
economic growth prospects, an improving business
environment, and continued strengthening of the global
He said an
MPC Private Sector Market Perception Survey conducted in
January showed an upsurge in optimism by the private
sector for the economic prospects in 2018.
month-on-month overall inflation fell to 4.5 percent in
December, down from 4.7 percent in November 2017,
remaining within the government target range.
decline was due to lower food prices, reflecting
improved supply of key food items, particularly
cabbages, Irish potatoes, tomatoes, sugar, and maize
flour,” he said.
decrease in food prices outweighed the increase in fuel
and electricity prices and the rise in transport costs
during the festive period,” he added.