FX.co ★ Kenya Cuts Rates for Sixth Straight Meeting

In June 2025, the Central Bank of Kenya reduced its benchmark interest rate by 25 basis points, bringing it down to 9.75%. This marks the sixth consecutive interest rate reduction. The Monetary Policy Committee highlighted that inflation had declined to 3.8% in May, down from 4.1% in April, maintaining a level below the midpoint of their target range of 5±2.5%. The decision is aimed at stimulating lending and boosting economic activity, with the bank noting the potential for further monetary easing. As a result, domestic lending rates have been on a downward trend, and there has been a modest recovery in credit growth within the private sector. The committee also took into consideration various global risks, such as the ongoing trade tensions between the US and China, conflicts in Ukraine and Palestine, a slowdown in domestic growth, and the cautious approach of major central banks worldwide in continuing to cut rates.