Kenya's central bank chief says FX reserves up, inflation set to slow in October

WASHINGTON, Oct 23 (Reuters) - Inflation in Kenya continues to decline and the country has built up more foreign exchange reserves, the country's central bank chief Kamau Thugge said on Wednesday, adding that he expected interest rates to go lower.

Inflation was set to decline below the 3.6% annual rate recorded in September, Thugge said, adding that the country's FX reserves currently stood at $8.6 billion, representing 4.3 months worth of imports.

More interest rate cuts also are on the cards, the Central Bank of Kenya governor said.

"It's the desire of everybody for interest rates to come down," Thugge told Reuters in an interview on the sidelines of the IMF and World Bank annual meetings in Washington.

Asked whether the country was going to request another financing programme with the IMF after the current one runs out in April, Thugge said it would be "the base case, that we continue our relationship with the IMF." (Reporting by Karin Strohecker; Editing by Paul Simao)