NAIROBI, (The Southern African Times) – The Central Bank of Kenya (CBK) on Thursday retained its benchmark lending rate at 7.0 percent amid the economic recovery from the effects of the COVID-19 pandemic.
Patrick Njoroge, CBK governor, who chaired the Monetary Policy Committee (MPC), the CBK’s top monetary policy organ’s meeting in Nairobi said that the leading indicators for the economy point to a strong gross domestic product (GDP) recovery in 2021, mainly supported by robust performance of construction, manufacturing, education, real estate and transport and storage sectors.
The governor added that inflationary pressures were rising domestically and internationally, even as expectations about inflation remained anchored within the target range in the medium term.
Njoroge revealed that the country’s foreign exchange reserves, which currently stand at about 1 trillion shillings (9.4 billion U.S. dollars) which is equivalent to 5.78 months of import cover, continue to provide adequate cover and a buffer against short-term shocks in the foreign exchange market.
