This archive report was first published on 24 September 2019.
On September 23, 2019, the Monetary Policy Committee (MPC) of the Central Bank of Kenya made a crucial decision regarding the country's credit lending rate.
The MPC announced that it would retain the lending rate at 9 percent, a decision that was influenced by the country's strong economic growth and a stable macroeconomic environment.
According to the MPC, the overall inflation rate remained within the target range in July and August 2019, falling to 5 percent in August from 6.3 percent in July.
The foreign exchange market also remained relatively stable, supported by a narrowing of the current account deficit to 4.2 percent of GDP in the 12 months to July 2019 from 5.5 percent in July 2018.
Furthermore, the committee noted that the country's economic growth was expected to remain strong in 2019 due to the implementation of the Big 4 agenda projects, improved weather conditions, and a stable macroeconomic environment.
Additionally, the MPC highlighted the strong growth in leading indicators of economic growth, including electricity consumption, cement consumption, tourist arrivals, consumption-based taxes, and imports of intermediate goods.
However, the committee also acknowledged the global economic slowdown, which was largely due to uncertainties surrounding the escalating trade tensions between China and the USA, as well as shifting expectations on the nature and timing of Brexit.
