The Central Bank of Kenya (CBK) has maintained its benchmark lending rate to commercial banks at 8.75 percent, marking 10 consecutive cuts and signalling the regulator’s shift in policy to rein in inflationary pressures sparked by the escalating war in the Middle East.
CBK’s Monetary Policy Committee (MPC) on Wednesday said higher energy and fertiliser costs caused by the closure of the Strait of Hormuz, a critical transport corridor that handles 20 percent of world oil and 30 percent of maritime trade, have fuelled increased inflation prospects for the global economies.
