The International Monetary Fund (IMF) has warned Kenya against a larger rate cut despite the fall in inflation to a 17-year low and the recent stability of the shilling, saying that easing monetary policy risks price stability.
The IMF caution clashes with recent pronouncements by the Treasury and the Central Bank of Kenya (CBK) that rates should be brought down in order to stimulate economic growth and tame the rising non-performing loans in the banking sector.
