The Central Bank of Kenya tightened the country’s monetary policy by raising the interest rate by 1 percent citing sustained increased inflation.
Kamau Thugge, the CBK governor and the chairman of the Monetary Policy Committee (MPC), said the bank had increased the rate from 9.5 percent to 10.5 percent to “anchor inflation expectations.”
“The committee noted that the sustained inflationary pressures, the increased risks to the inflation outlook, the elevated global risks, and their potential impact on the domestic economy. The MPC thus concluded that there was scope for further tightening of the monetary policy,” Thugge said in a statement issued in Nairobi, the capital of Kenya.—Xinhua
