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Kenya’s central bank will likely cut interest rates this week, bolstering an economy that some economists say may be a rare beneficiary of US tariffs.
Kenya’s monetary policy committee cut its main interest rate for the fourth meeting in a row to 10.75% in February.
Goldman Sachs, in a note, said it expects the bank to continue with its policy easing cycle, cutting its benchmark rate by 50 basis points. Charlie Robertson, author of The Time-Travelling Economist, told Semafor he also expected a rate cut. He said the US tariffs would likely benefit Africa’s oil-importing economies, like Kenya. “Oil importers with relatively high debt get a double benefit from the shock of Trump’s tariffs. The energy import bill will fall and it is good for inflation,” he said.
— Alexis
