Kenya Interest Rate

The benchmark interest rate in Kenya was last recorded at 8.50 percent. Interest Rate in Kenya is reported by the Central Bank of Kenya. Interest Rate in Kenya averaged 14.69 Percent from 1991 until 2014, 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. 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 - Kenya Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. 2014-04-23

Actual Previous Highest Lowest Forecast Dates Unit Frequency
8.50 8.50 84.67 0.83 8.50 | 2014/06 1991 - 2014 Percent Monthly

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Kenya Interest Rate
LIST BY COUNTRY


CALENDAR GMT Country Event Reference Actual Previous Consensus Forecast
2013-07-09 03:00 PM Kenya
Interest Rate Decision
8.5% 8.5% 8.5%
2013-09-03 02:10 PM Kenya
Interest Rate Decision
8.5% 8.5% 8.5%
2013-11-05 02:00 PM Kenya
Interest Rate Decision
8.5% 8.5% 8.75%
2014-01-14 01:45 PM Kenya
Interest Rate Decision
8.5% 8.5% 8.5%
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Money Last Previous Highest Lowest Forecast Unit
Foreign Exchange Reserves 8483.20 2013-12-31 7927.00 8483.20 853.00 8928.03 2014-06-30 USD Million [+]
Interest Rate 8.50 2014-03-04 8.50 84.67 0.83 8.50 2014-06-30 Percent [+]
Money Supply M1 799.80 2014-01-31 788.30 799.80 97.90 830.15 2014-06-30 KES Billion [+]
Money Supply M2 1655.48 2014-01-31 1632.85 1655.48 302.72 1730.66 2014-06-30 KES Billion [+]
Money Supply M3 1982595.00 2014-01-31 1957492.00 1982595.00 345.90 2307197.38 2014-06-30 KES Billion [+]
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Kenya Monetary Policy Unchanged in March

Kenyan Monetary Policy Committee decided to hold the central bank rate at 8.50 percent on March 4th, as overall inflation continued to decline in February and remained within the target range, while exchange rate stability was maintained.

Excerpt from the statement by the Central Bank of Kenya:

The overall month-on-month inflation declined from 7.21 percent in January to 6.86 percent in February. Month-on-month non-food-non-fuel (NFNF) inflation remained relatively stable: it increased slightly from 4.83 percent to 4.93 percent during the period. This is an indication that the monetary policy stance has continued to support a stable inflation rate and that private sector credit growth during the period was non-inflationary.

Exchange rate stability was sustained during the period. The Kenya Shilling to US Dollar rate fluctuated within a narrower range in February compared to the previous month. The Central Bank increased its level of usable foreign exchange reserves in the period, mainly attributed to commercial banks selling of foreign exchange.

The Government domestic borrowing program for the Fiscal Year 2013/14 as provided in the Medium-Term Budget Policy Statement, remains consistent with the monetary policy objectives, ensuring the expected increase in private investment and enabling the bond market to remain vibrant while also facilitating the deepening of the capital market.

Confidence in the economy remains strong. Specifically, the latest Sovereign rating by Fitch Rating agency undertaken in February placed Kenya at "B+ with a stable outlook" and improved its position on Nairobi Securities Exchange (NSE) index. Diaspora remittances remained resilient. This was further supported by the MPC Market Perception Survey which showed that the private sector expects inflation and the exchange rate to remain stable for the remainder of 2014. Furthermore, the private sector firms sustained their optimism for a strong growth in 2014.

Central Bank of Kenya | Isabel Felino | isabel.felino@tradingeconomics.com
3/4/2014 4:41:13 PM

RECENT RELEASES

Kenya Leaves Rate on Hold at 8.5%
At is January 14th meeting, Central Bank of Kenya decided to leave the benchmark interest rate on hold at 8.5 percent, as the current monetary policy stance is considered to deliver the desired objective of price stability. The Committee also said there was room for commercial banks to reduce the lending rates. Published on 2014-01-14

Kenya Monetary Policy Unchanged in November
Central Bank of Kenya decided on November 5th to hold the benchmark interest rate unchanged at 8.5 percent for the sixth straight meeting. The Committee noted that while overall inflation had declined in October, it remained above the 7.5 percent upper bound for the Government medium-term target. However, the strengthening of the Kenya Shilling against major currencies moderated any impact of the pass-through effect of imported inflation. Published on 2013-11-05


Interest Rate | Notes
The interest rate shown on this page refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate. Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.


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