The Monetary Policy Committee of the Central Bank of Kenya yesterday decided to maintain the Central Bank Rate (CBR) at 18 percent.

The committee, mandated to oversee issues concerning the achievement and sustainability of the general price levels (inflation) and chaired by the governor of the Central Bank Prof Njuguna Ndung'u decided, in a meeting held yesterday, to maintain the benchmark rate at 18%, for yet another month.

This means that there is little to expect from commercial banks in terms of reductions in interest rates on loans in the near future. Inflation however has responded positively to the high interest rate regime, slowing down to 12.22% as of May 2012 according to statistics from the CBK.