Soft inflation outlook hands CBK room for further rate cut

The Central bank of Kenya in Nairobi.

Photo credit: File | Nation Media Group

The Central Bank of Kenya (CBK) projects the country’s inflation to remain largely below the mid-point target of five percent over the next 12 months, handing the apex bank more headroom for cuts on its benchmark rate.

CBK expects inflation to rise steadily past the midpoint target into 2026 but sees a peak of 5.2 percent in March next year, before a gradual unwinding back to below the midpoint at 4.6 percent by mid-year.

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