Kenya's Central Bank Holds Benchmark Rate at 8.75% for Fourth Straight Meeting

Kenya's central bank left its benchmark lending rate unchanged at 8.75% on Wednesday, following a meeting of its Monetary Policy Committee in Nairobi.

It was the fourth policy meeting in a row that the Central Bank of Kenya has kept the rate steady.

Economists Split Ahead of the Decision

A Reuters poll of 11 economists had nine predicting a hold, while two expected a raise to 9.0%. The committee sided with the majority.

Kenya's inflation rose to 6.8% year-on-year in September, up from 6.6% a month earlier. That moved price growth closer to the upper end of the government's preferred 2.5% to 7.5% range.

The bank said in a statement that inflation is expected to remain within the target range in the near term.

Why the Committee Sat Tight

With inflation still inside the band, the committee saw no immediate need to tighten. The rise from 6.6% to 6.8% keeps price growth well clear of the ceiling, even as it drifts upward.

Holding the rate for a fourth consecutive meeting also signals a wait-and-see stance, giving previous policy moves more time to work through the economy.

The decision leaves Kenya's benchmark rate at 8.75%.