Banks, analysts split on CBK benchmark rate call

The Kenya Bankers Association (KBA) favors an increase in the CBK benchmark rate to anchor inflation expectations, while analysts at AIB-AXYs Africa expect a modest 25-basis-point hike to 9%. Inflation rose to 6.7% in May, a 28-month high, nearing the 7.5% ceiling that would warrant CBK intervention. Some argue a rate rise is premature given the external oil price shock and the shilling's stability against the dollar.