NAIROBI – Kenya’s central bank reduced its policy lending rate on Monday by 100 basis points to 10.5 percent, saying inflation was expected to decline further.
Eight out of 12 analysts polled by Reuters had expected the bank to hold rates but the bank’s Monetary Policy Committee (MPC) said lower inflation had created room to ease policy.
“Overall inflation is expected to decline and remain within the Government target range in the short-term,” the MPC said in a statement.
Inflation fell to 5.27 percent in April from 6.45 percent in March, well within the government’s preferred band of 2.5-7.5 percent.(Reuters)
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