Kenya’s inflation rate remained below the central bank’s target range for the eighth consecutive month in January. According to the Kenya National Bureau of Statistics, consumer prices increased by 3.3% in January, up from 3% in December, surpassing the median forecast of 2.8% from economists surveyed by Bloomberg.
This trend suggests that the Central Bank of Kenya may consider lowering interest rates in its upcoming meeting next week. The stable inflation performance, staying within manageable levels, provides the central bank with the flexibility to adjust monetary policy to further support economic growth.
With inflation not posing an immediate threat to the economy, the central bank may have room to cut rates, offering additional support to the country’s growth. This could be a crucial factor in their upcoming decision on interest rates.