The Central Bank of Kenya has lowered its benchmark lending rate by 100 basis points to ten and half percent citing a fall in the country’s overall inflation.
The bank’s committee noted that overall inflation is expected to decline and remain within the government target range in the short-term.
Governor of the Bank, Patrick Njoroge said there is space for easing of monetary policy while anchoring inflation expectations.
The country’s month on month inflation fell to 5.3 per cent in April from six and half per cent recorded in March.
The bank said it will continue to monitor key macro-economic aggregates and developments in the economy that will be used as instruments to maintain overall price and financial sector stability.