The Central Bank of Kenya kept its Monetary Policy Rate at 13 percent for the second time in 2024.
The Monetary policy committee explained that the rate has lowered the inflation rate of the country. It has stabilized the exchange rate and anchored inflationary expectations.
Food inflation went up to 6.2 percent in May compared to 5.6 percent in April, due to supply disruptions attributed to the recent heavy rains and flooding in some parts of the country.
The MPR was maintained to anchor inflationary expectations while ensuring stability of the shilling in a bid to allow for previous hikes to fully transmit through the economy.
The Monetary Policy Committee (MPC) chairman, Governor Kamau Thugge, stated that the global growth continues to recover, supported by stronger than expected growth in the United States, and resilient growth in some large emerging market economies, particularly India.
“Overall inflation is expected to remain stable around the midpoint of the target range in the near term, supported by the stable exchange rate, improved food supply attributed to favorable weather conditions, stable fuel prices, and the impact of monetary policy actions which continue to filter through the economy,” the MPC said.
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