Kenya's central bank retains benchmark rate at 8.75 pct

The Central Bank of Kenya (CBK) said on Monday that it retained its benchmark lending rate at 8.75 percent amid declining inflation.

CBK Governor Patrick Njoroge, who chaired the Monetary Policy Committee meeting in the Kenyan capital of Nairobi, said food inflation has reduced, largely driven by a decrease in prices of maize and milk products following improved supply attributed to the ongoing harvests and the impact of the recent short rains.

"Additionally, prices of edible oils and wheat products declined due to lower global commodity prices with the easing of international supply chain disruptions," Njoroge said in a statement.

Njoroge said the impact of the further tightening of monetary policy in November 2022 to anchor inflationary pressures was still transmitting in the economy.