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| Kenya Central Bank in Nairobi |
NAIROBI - Kenya's
central bank left its key lending rate unchanged at 18 percent as
expected on Wednesday, saying while inflation was expected to keep
falling, credit growth needed to slow further and risks remained.
All analysts polled by Reuters had forecast the central bank
would leave rates on hold. While most expect the next rate move to be
down, they said the Central Bank of Kenya would pause to let past rises
have their full impact on the economy.
The central bank's Monetary Policy Committee said in a statement
that balance of payments pressures and the continued uncertainty in
global financial markets due to the eurozone crisis remained the main
risks to inflation and the currency.
It said forecasts for dry weather in most parts of the country
and frost in February also presented risks to food supplies, while
geopolitical risks could interrupt oil supplies and affect fuel prices
globally.
Higher food and fuel prices were the main factors that pushed
inflation in east Africa's biggest economy to a 2011 peak of 19.72
percent in November. The inflation rate has since declined to 18.31
percent in January.
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