The Monetary Policy Committee (MPC) has for the third time in a row retained the base lending rate at seven per cent, citing the impact of the Covid-19 pandemic on the economy.
Central Bank of Kenya Governor Patrick Njoroge, who heads the committee, Wednesday cited continuing effects of the Covid-19 pandemic on the economy.
Njoroge said that services and exports declined by 20 per cent in the first half of 2020 reflecting the weakness in tourism and air transportation.
Consequently, the current account deficit is projected at about 5.1 per cent of GDP in 2020.
Nevertheless, he affirmed the policy measures adopted since March were having the intended effect on the economy and will be augmented by implementation of the measures in the 2020/21 budget.
