The Central Bank of Kenya (CBK) raised the benchmark lending rate by 0.75 basis points to 8.25 Thursday for fear of looming inflation.
The move is meant to slam breaks on inflation that soared to its record 8.3 percent from 7.9 in June – the highest
Central Banks in both developed and emerging economies are raising their benchmark lending rates amidst the high cost of living due to soaring inflation rates.
The lending rates have a considerable impact on the economy for consumers and businesses from both spectrums.
The recent country to revise
The Central Bank of Kenya (CBK) raised the benchmark lending to 7.5 percent for the first time since July 2015.
The Monetary Policy Committee (MPC) in a meeting Monday, cited the elevated risks to inflation outlook due to increased global prices.
CBK first set the lending rate
The Central Bank of Kenya (CBK) has for the umpteenth time retained the Central Bank Rate (CBR) at 7 percent on the account of increased risk of inflationary pressures arising from the global uncertainties.
This is the thirteenth time CBK is maintaining the rate at 7