Interest Rate in Kenya
Kenya - Interest Rate
Central Bank holds rates steady in July
At its meeting on 24 July, the Monetary Policy Committee (MPC) of Kenya’s Central Bank decided to hold the central bank rate stable at 9.00%, where it has been since July 2018. The decision was widely expected by market analysts.
With inflation receding in May–June from April’s surge, the Bank opted to keep monetary policy conditions unchanged. Although food prices remained relatively high, core inflation stood below the mid-point of the 2.5%–7.5% target band suggesting that, despite robust economic activity, demand side pressures stayed muted. In addition, a favorable external backdrop has underpinned the stronger shilling this year, further supporting the Bank’s decision to stay pat.
In its forward guidance, the Bank remarked that inflation should remain “well anchored within the target range”, as improved weather conditions are expected to lower food price pressures in the near-term. Moreover, with the economy projected to continue operating close to full capacity thanks to upbeat public investment and improved agricultural output, there is no immediate need for monetary stimulus. However, slower global growth and oil price volatility pose downside risks to the outlook and could heighten price pressures ahead.
FocusEconomics Consensus Forecast panelists expect the Bank to remain on hold for the rest of the year and see the central bank rate ending 2019 at 9.19%. For 2020, panelists project that the rate will fall to 8.93% by the end of the year.
Kenya - Interest Rate Data
| 2013 | 2014 | 2015 | 2016 | 2017 | |
|---|---|---|---|---|---|
| Policy Interest Rate (%) | 8.50 | 8.50 | 11.50 | 10.00 | 10.00 |
Kenya Interest Rate Chart
Source: Central Bank of Kenya
Kenya Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 11.45 | 0.0 % | Jul 31 |
| Exchange Rate | 104.2 | 0.05 % | Jul 31 |
| Stock Market | 0.3 | 0.0 % | Jul 31 |
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Economic News
Kenya: PMI eases but remains strong in July
August 5, 2019
Businesses conditions in the Kenyan private sector continued to improve, albeit at a softer pace, in July.
Kenya: Inflation rises in July
July 31, 2019
Consumer prices fell 0.36% over the previous month in July, following a 0.69% month-on-month drop in June.
Kenya: Central Bank holds rates steady in July
July 24, 2019
At its meeting on 24 July, the Monetary Policy Committee (MPC) of Kenya’s Central Bank decided to hold the central bank rate stable at 9.00%, where it has been since July 2018.
Kenya: PMI rises to 10-month high in June on soaring business sentiment
July 3, 2019
Business conditions in the Kenyan private sector improved further in June after rebounding in May.
Kenya: Growth softens to over one-year low in Q1
July 1, 2019
Economic growth came in at 5.6% year-on-year in the first quarter, decelerating from Q4 2018’s 6.0% and marking the lowest print since Q3 2017.
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