The Central Bank of Kenya held its benchmark lending rate at 8.75% on Wednesday 7 October after a meeting of its Monetary Policy Committee, according to Reuters. It was the fourth policy meeting in a row at which the bank kept the rate unchanged.
The Bank of Tanzania also left its benchmark rate at 6.25%, saying its current policy stance remained appropriate to contain inflationary pressures and support economic growth, according to BusinessDay. The central bank of the Democratic Republic of the Congo also held rates in the same week, according to Central Banking.
In Kenya, inflation rose to 6.8% year on year in September from 6.6% in August, moving closer to the upper end of the government's preferred 2.5%-7.5% range. The central bank said it expects inflation to remain within the target range in the near term. A Reuters poll of 11 economists had nine predicting a hold and two forecasting a rise to 9.0%.
BusinessDay reported that the Central Bank of Kenya expects the current account deficit to widen to 3.2% of gross domestic product in 2026, from 2.1% in 2025.
Tanzanian inflation stood at 4.3% year on year in August, the latest available figure, within the central bank's target range. The Bank of Tanzania said economic activity remained strong, with the economy growing 6% in the first quarter of 2026.
The decision follows a 50 basis point increase in July, when the Bank of Tanzania raised its key rate to 6.25% from 5.75%. It was the first increase since April 2024, and Tanzania targets inflation of between 3% and 5% over the medium term, BusinessDay reported.
Related: Central Bank of Kenya approves Nedbank's acquisition of up to 66% of NCBA Group