Market News

CBK sets policy rate meeting for January 22

Central Bank of Kenya head office in Nairobi. FILE PHOTO | NMG
Central Bank of Kenya head office in Nairobi. FILE PHOTO | NMG 

The Central Bank of Kenya (CBK) will hold its next policy rate setting meeting on January 22, it said Monday.

The regulator retained its benchmark rate at 10 per cent at the last Monetary Policy Committee (MPC) meeting held last month.

The benchmark has been unchanged for the whole of this year as a rate capping law that came into effect in September 2016 swayed the regulator’s arm on where interest rates should be.

Analysts polled by the Business Daily before the last sitting said they expected the CBK to keep the rate steady until at least mid-2018 as they watch out the effect of ongoing political events and effects of accounting rules changes in the new-year.

Some said a slowing inflation rate – at a 4.3-year low of 4.73 per cent – and slower economic growth was a perfect recipe for a rate cut if interest rates were free floating, which is no longer the case with implementation of the law since September last year.

The CBK will hold a media briefing on the bi-monthly meeting on January 23 as is tradition, it said.