Economics
Kenya's MPC Cuts Rates to Spur ‘Below-Potential’ Economic Growth
- Central bank has forecast economy will grow by 6.3% in 2018
- MPC sees inflation staying in target due to lower food prices
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Kenya’s Monetary Policy Committee unexpectedly cut its benchmark rate for the second time this year to spur private-sector lending and economic growth.
After signaling room for a more accommodative monetary policy at its May meeting, the MPC reduced the gauge to 9 percent, the lowest in three years, from 9.5 percent, according to a statement published Monday on the Nairobi-based central bank’s verified Twitter account. Only two of seven analysts surveyed by Bloomberg had predicted a reduction.