The Central Bank of Kenya has decided to keep the central bank rate unchanged at 18% for the 2nd month running.

In a press release following the meeting of the Monetary Policy Committee today, the Governor highlighted that the inflation rate had dropped from 18.93% in December 2011 to 18.31% in January 2012. The committee also highlighted that the Meteorological department has forecast dry spells that may affect food supply and international oil prices may be affected by the geo-political risks related to the movement of oil through the Strait of Hormuz which would led to cost-push inflation. In addition, the private sector credit growth i.e. the rate of growth amount of money being lent by banks to individuals and businesses had declined but need to go lower so as to reduce the cases of too much money chasing too few goods.

Read the full press release here