Central Bank of Kenya cuts rates by 25bp
First reduction in more than four years comes as inflation declines and CBK issues new banknotes
The Central Bank of Kenya (CBK) cut its key interest rate by 25 basis points to 12.75% at its meeting on August 6 – its first reduction since April 2020.
The decision came after annual inflation declined to 4.3% in July from its peak of 9.6% in October 2022. Headline inflation, which had been 6.9% in January, fell to 4.6% in June. The CBK’s inflation target range is between 2.5% and 7.5%.
Falling inflation, both domestically and globally, prompted the CBK’s monetary policy committee (MPC) to cut
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