Kenya central bank cuts main lending rate by 25 basis points

Kenya's central bank cut its benchmark lending rate by 25 basis points to 12.75% on Tuesday, saying there was scope for a gradual easing of its policy stance while ensuring continued exchange rate stability.

"The MPC (Monetary Policy Committee) noted that its previous measures have lowered overall inflation to below the mid-point of the target range, stabilized the exchange rate, and anchored inflationary expectations," the central bank said in a statement.

"The MPC will closely monitor the impact of the policy measures as well as developments in the global and domestic economy and stands ready to take further action as necessary in line with its mandate," it added.

The rate cut comes after two monetary policy meetings at which the Central Bank Rate was left unchanged.