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Kenya Central Bank Raises Key Interest Rate to Tame Inflation

By George Mwangi

Special to Dow Jones Newswires


NAIROBI--Kenya's central bank raised Thursday its key interest rate in order to tame inflation pressures.

The central bank increased its key lending rate by 75 basis points, to 8.25% from 7.50%, in order to further anchor inflation expectations, it said in a statement.

"Overall inflation is expected to remain elevated in the near term, due in part to the scaling down of the government price support measures, resulting in increases in fuel and electricity prices, the impact of tax measures in the financial year 2022-2023 budget, and global inflationary pressures," the bank said.

Kenya's inflation rate accelerated to 8.5% in August from 8.3% in July driven by higher food and fuel prices.

The country's central bank already raised interest rates by 50 basis points in May, its first increase since March 2020.


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(END) Dow Jones Newswires

September 29, 2022 11:46 ET (15:46 GMT)

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