Inflation Uptick May Hold Kenyan Interest Rates Steady: ChartBy
After reducing its benchmark rate in May for the first time in three years, Kenya’s central bank will probably hold off loosening policy further. Higher excise levies on products including cars and fuel increase may push up consumer prices in the second half of 2016 and a poor harvest of the country’s main staple, corn, could raise the food and non-alcoholic drink index, which accounts for a third of the inflation basket. Only one of eight economists surveyed by Bloomberg sees the central bank reducing borrowing costs from 10.5 percent on Monday.
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