Kenya Central Bank Cuts Lending Rate to 10.75%
The Central Bank of Kenya (CBK) cut its benchmark lending rate by 50 basis points to 10.75%, the monetary policy committee led by Governor Kamau Thugge said in an emailed statement.
This is the fourth rate cut amidst a plan to drive economic growth amidst an inflation slowdown. The decision was made within a context of a recovering global growth outlook, projected to improve to 3.3 percent in 2025 from 3.2 percent in 2024, and a moderated global inflation rate.
The MPC’s measures also follow the introduction of core and non-core inflation measures by the Kenya National Bureau of Statistics (KNBS) and the CBK in January 2025, in line with harmonised Consumer Price Index computation.
Kenya’s overall inflation stood at 3.3 percent in January 2025, with core inflation declining to 2.0 percent from 2.2 percent in December 2024. Inflation slides on the back of lower prices of processed food items, while non-core inflation rose due to higher food crop prices.
The authority anticipates overall inflation to remain below the midpoint of their target range, supported by low core inflation and expected easing of energy prices. #Kenya Central Bank Cuts Lending Rate to 10.75% 2025 Budget: Osun Govt Targets N109bn IGR
