The Central Bank of Kenya(CBK) has said it will maintain its lending rate at 9 percent.
The Monetary Policy Committee(MPC) which met in Nairobi noted that inflation expectations remained well anchored within the target range, but there is need to remain vigilant on possible spillovers of recent food and fuel price increases.
The committee further noted that the economy was operating close to its potential.
“The MPC concluded that the current policy stance remains appropriate, and will continue to monitor any perverse response to its previous decisions,” a CBK statement issued in Nairobi on Monday evening disclosed.
The meeting was held against a backdrop of domestic macroeconomic stability, sustained optimism on the economic growth prospects, improving weather conditions in most parts of the country and increased uncertainties in the global financial markets.
JK/as/APA