Kenya's Central Bank Cuts Policy Rate by 25bps to 9.25%

BY MT Newswires | ECONOMIC | 10/07/25 12:08 PM EDT

12:08 PM EDT, 10/07/2025 (MT Newswires) -- Kenya's central bank (CBK) Tuesday said its Monetary Policy Committee decided to lower the Central Bank Rate (CBR) by 25bps to 9.25% as inflation stays on target.

Kenya's overall inflation stood at 4.6% in September compared with 4.5% in August, and remained below the mid-point of the target range of 5%, more or less 2.5 percentage points. Core inflation declined to 2.9% in September from 3.0% in August, mainly on account of lower prices of processed food items, particularly maize flour, noted the central bank

Overall inflation is expected to remain below the midpoint of the target range in the near term, supported by stable energy prices, and continued exchange rate stability, wrote the CBK in its policy note

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article