21 Mar 2009

Kenya cuts lending rate to 8.25%

7:40 am on 21 March 2009

The central bank of Kenya has cut its key lending rate by 25 basis points to 8.25%.

The cut on Friday was contrary to market expectations.

The rate was previously held at 8.5% in January after a cut of 50 basis points in December.

Annual overall inflation in February was at 25.1%, compared to 21.9% the previous month.

Core inflation, which excludes food items from the consumer price index, slowed to 7.9% in February from 8.4% in January.