Kenya’s central bank left its benchmark lending rate unchanged at 8.75 percent on Tuesday for a second consecutive meeting, defying calls from commercial banks for tighter monetary policy as policymakers weighed rising inflation against slowing economic growth in East Africa’s biggest economy.
The decision was widely expected, with economists polled by Reuters and Bloomberg forecasting a hold after the Central Bank of Kenya (CBK) paused its easing cycle in April.
The move comes despite lobbying from the Kenya Bankers Association (KBA), which had urged the regulator to raise interest rates to curb mounting inflationary pressures triggered by rising global oil prices and the fallout from the Iran conflict.
Instead, the Monetary Policy Committee opted to maintain its current stance, arguing that existing policy settings remain sufficient to anchor inflation expectations and support exchange-rate stability.
“The MPC noted that there is need to continue monitoring the evolution of global oil prices
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