Kenyan policymakers have attributed the slowing inflation and need to allow room to spur economic growth as the reason behind the recent cut of the central bank’s benchmark interest rate.
The Monetary Policy Committee in the country maintained that the inflation rate of the country as well within the government projection which indicates a downward trend as compared to several months ago.
The move is targeted at easing the monetary policy in order to support the economic activities of Kenya seeing as there is optimism for growth prospects in the economy and that economic output was below its potential level.
The cut will help Kenya’s economy seeing as it is looking to embark on a more consolidative fiscal path.
