Kenya’s Finance Minister John Mbadi called for the central bank to lower its lending rate as inflation has been decreasing recently. The government aims for an inflation rate between 2.5% and 7.5% in the medium term. In September, inflation dropped to 3.6% year-on-year from 4.4% the previous month and 4.3% in July. Mbadi stated that inflation is now well-controlled and suggested that lowering the interest rate could encourage more loan uptake by the private sector, leading to job creation. The central bank is expected to announce its next interest rate decision on Oct. 8. It had previously reduced its benchmark lending rate by 25 basis points in August due to inflation falling below its target range midpoint. Mbadi also attributed the decreasing inflation to factors such as a stronger shilling and the central bank’s previous tight monetary policy stance.
