NAIROBI, July 27 – Kenya’s central bank surprised markets by leaving its benchmark interest rate unchanged at 6.25 percent on Wednesday, confounding analysts and putting the shilling under pressure.
Nine out of 12 analysts expected the bank to increase its Central Bank Rate modestly, to send a signal to financial markets about its tightening credentials with inflation running at 14.5 percent and the currency near all-time lows.
The central bank raised its key rate by a lower-than-expected 25 basis points in May and has since introduced a number of measures to tighten liquidity in the domestic money market to try and curb the shilling’s fall.
Source: Reuters Africa newsletter
Did you find this information helpful? If you did, consider donating.