The Central Bank of Kenya (CBK) has cut rates for a second consecutive time, as the economy continues to operate below potential.

The monetary policy committee cut the central bank rate 25 basis points to 8.25% today (January 27). Policy-makers noted “well-anchored” inflation expectations, as well as tighter fiscal policy and the need to provide more stimulus to growth.

Inflation was 5.8% in December, up from 5.6% in November but well inside the central bank’s target range of 2.5–7.5%. The MPC