You should take an interest in the CBR

In most countries, there's one interest rate that rules them all. The Central Bank of Kenya met last week to set ours and these are the minimum viable take-aways.

What Happened?

The CBK has left its benchmark lending rate unchanged at 13 per cent with inflation having retreated last month. Sentiment: Positive

Between The Lines

The objective of monetary policy is to maintain price stability in the economy. Price stability refers to maintenance of low and stable inflation.

All central banks have an ideal target range for inflation within which the economy will perform 'optimally'. At last week's meeting, the Monetary Policy Committee (MPC) noted that inflation is expected to remain within the target range, supported by lower food prices with the expected improved supply.

Should You Care?

For now, interest rates on your loans won't change. But this is one we recommend you spend a few minutes on and we have dedicated this week's Insight topic to the CBR. More below.

Buzzword Translator

• Monetary policy refers to the actions taken by a country's central bank to control the supply of money, interest rates, and credit in the economy, with the goal of achieving stable prices, low unemployment, and sustainable economic growth.–AG