Commercial banks have called on the Central Bank of Kenya (CBK) to hold its base rate at 8.75 percent in Wednesday’s Monetary Policy Committee (MPC) meeting, citing rising global risks from the Iran war that have increased pressure on inflation and the exchange rate.
Through the Kenya Bankers Association (KBA), the lenders said that while headline inflation remained within the CBK’s preferred range of five percent plus or minus 2.5 percentage points, forward looking projections point to escalation risks from pass-through effects of higher oil prices and disruptions on trade channels and supply routes in the Middle East.
