The Central Bank of Kenyan has kept the central bank rate at 7 per cent in spite of falling inflation and rising growth. Inflation has fallen dramatically, partly because of a change in the way it’s calculated, which has brought the rate down from 17.9 per cent in September to 5.3 per cent in December. Inflation is expected to continue to fall. The central bank rate was cut sharply at the last meeting in November, down by 0.75 percentage points, which probably explains the decision to keep rates steady.
© The Financial Times Ltd 2016 FT and 'Financial Times' are trademarks of The Financial Times Ltd.