Central Bank has retained the base lending rate at 9.5 per cent arguing that the economy needs more time to benefit from the limit set in March.
The MPC noted that inflation expectations were well anchored within the government target range, economic output was below its potential level and that there was some room for accommodative monetary policy.
“The committee assessed that the policy action at its March meeting was yet to be fully transmitted to the economy, including a determination of any perverse outcomes,” said Patrick Njoroge, Chairman, Monetary Policy Committee.
“We will continue to closely monitor developments in the global and domestic economy, and stands ready toi take additional measures as necessary” he added.
Central Bank cut the rate by 50 basis points at the last sitting of its monetary policy committee in March, saying the economy needed a boost.
