The Central Bank of Kenya left its benchmark interest rate unchanged at 9.0 percent at its November 27th 2018 meeting, as widely expected. Policymakers said that the decision is appropriate and based on the backdrop of macroeconomic stability, economic growth prospects and uncertainties in the global financial markets. Policymakers noted that inflation expectations remained well anchored within the target range and that the economy was operating close to its potential. The Committee also said that they continue to monitor global and domestic economic developments and if necessary take additional measures. Interest Rate in Kenya averaged 13.86 percent from 1991 until 2018, reaching an all time high of 84.67 percent in July of 1993 and a record low of 0.83 percent in September of 2003.

Interest Rate in Kenya is expected to be 9.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Kenya to stand at 9.50 in 12 months time. In the long-term, the Kenya Interest Rate is projected to trend around 9.00 percent in 2020, according to our econometric models.

Kenya Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-05-28 01:30 PM Interest Rate Decision 9.5% 9.5% 9% 9.5%
2018-07-30 01:30 PM Interest Rate Decision 9% 9.5% 9.5% 9.5%
2018-09-25 01:30 PM Interest Rate Decision 9% 9% 9% 9%
2018-11-27 01:30 PM Interest Rate Decision 9% 9% 9% 9%
2019-01-28 01:30 PM Interest Rate Decision 9%



Kenya Interest Rate Steady at 9%


The Central Bank of Kenya left its benchmark interest rate unchanged at 9.0 percent at its November 27th 2018 meeting, as widely expected. Policymakers said that the decision is appropriate and based on the backdrop of macroeconomic stability, economic growth prospects and uncertainties in the global financial markets. Policymakers noted that inflation expectations remained well anchored within the target range and that the economy was operating close to its potential. The Committee also said that they continue to monitor global and domestic economic developments and if necessary take additional measures.

Excerpts from the MPC Press Release:

Month-on-month overall inflation remained within the target range in September and October, largely due to lower food prices and muted demand-driven inflationary pressures. The inflation rate fell to 5.5 percent in October from 5.7 percent in September, following decreases in food prices which offset the increase in energy prices and transport costs following the implementation of VAT on petroleum products in September 2018. Non-food-non-fuel (NFNF) inflation remained below 5 percent, indicating that there were no demand pressures in the economy. Looking forward, overall inflation is expected to remain within the target range in the near term, mainly due to expected lower food prices reflecting favorable weather conditions, the decline in international oil prices, and the recent downward revision in electricity tariffs. The recent excise tax adjustment on voice calls and internet services is expected to have a marginal impact on inflation.

Data for the second quarter of 2018 showed a strong pickup of the economy, with real GDP growth averaging 6.0 percent in the first half of 2018 compared to 4.7 percent in the first half of 2017. This outcome was due to a strong recovery in agricultural activity due to improved weather conditions, continued recovery of the manufacturing sector, and resilient performance of the services sector particularly trade, tourism, information and communication, transport, and real estate. Overall growth in 2018 is expected to be strong, supported by recovery in agricultural production, alignment of Government spending to the Big 4 priority sectors, a stable macroeconomic environment, an improved business environment, and a favorable external environment.

The MPC Private Sector Market Perception Survey conducted in November indicated that inflation expectations were well anchored within the target range in the near term on account of lower food prices and reduction in electricity prices. The Survey revealed increased optimism for stronger overall growth in 2018. Respondents attributed this optimism to, among other factors, improved agricultural production, continued infrastructure development, an improvement in the business environment, focus by the Government on the Big 4 priority sectors, a stable macroeconomic environment and the expected increase in trade and tourist arrivals following the commencement of direct flights to the United States. However, the optimism was tempered by sluggish private sector credit growth, concerns over delayed government spending, and the recent increase in fuel prices.

The Committee noted that inflation expectations remained well anchored within the target range, and that the economy was operating close to its potential. The MPC concluded that the current policy stance remains appropriate, and will continue to monitor any perverse response to its previous decisions. The Committee therefore decided to retain the CBR at 9.00 percent. The MPC will continue to closely monitor developments in the global and domestic economy and stands ready to take additional measures as necessary.


Central Bank of Kenya | Stefanie Moya | stefanie.moya@tradingeconomics.com
11/27/2018 1:53:06 PM



Kenya Money Last Previous Highest Lowest Unit
Interest Rate 9.00 9.00 84.67 0.83 percent [+]
Interbank Rate 3.48 4.28 68.30 0.40 percent [+]
Money Supply M1 1436.27 1390.28 1445.86 71.50 KES Billion [+]
Money Supply M2 2717.89 2671.31 2717.89 231.09 KES Billion [+]
Money Supply M3 3270565.18 3241379.00 3270565.18 244755.00 KES Million [+]
Foreign Exchange Reserves 12099.10 12264.30 12264.30 853.00 USD Million [+]
Deposit Interest Rate 7.70 8.70 18.40 2.43 percent [+]
Loans To Private Sector 2326105.00 2335247.00 2344446.00 166281.00 KES Million [+]
Central Bank Balance Sheet 1023256.00 1044017.00 1050524.00 93720.00 KES Million [+]


Kenya Interest Rate

In Kenya, interest rates decisions are taken by The Monetary Policy Committee (MPC) of the The Central Bank of Kenya. The official interest rate since August 2005 is the Central Bank Rate (CBR), which replaced the 91-day Treasury Bill (TB) rate. This page provides the latest reported value for - Kenya Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Kenya Interest Rate - actual data, historical chart and calendar of releases - was last updated on December of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
9.00 9.00 84.67 0.83 1991 - 2018 percent Daily




Country Last Previous
Argentina 59.16 Dec/18
Turkey 24.00 Nov/18
Mexico 8.00 Nov/18
Russia 7.50 Nov/18
South Africa 6.75 Nov/18
Brazil 6.50 Nov/18
India 6.50 Dec/18
Indonesia 6.00 Nov/18
China 4.35 Oct/18
Saudi Arabia 2.75 Oct/18
United States 2.25 Nov/18
Canada 1.75 Dec/18
South Korea 1.75 Nov/18
Australia 1.50 Dec/18
Singapore 1.45 Oct/18
United Kingdom 0.75 Nov/18
Euro Area 0.00 Nov/18
France 0.00 Nov/18
Germany 0.00 Nov/18
Italy 0.00 Nov/18
Netherlands 0.00 Nov/18
Spain 0.00 Nov/18
Japan -0.10 Oct/18
Switzerland -0.75 Nov/18


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