Kenya central bank surprised markets by raising its benchmark interest rate to 9.5%, a 75 bps increase, the highest level since mid-2018. Policymakers cited sustained inflationary pressures and global risks as the main reasons for the decision. Kenya’s annual inflation rate accelerated to 9.2% YoY in February, above market forecasts and the central bank’s target range. Officials will closely monitor the outcome of its policy measures and are ready to take additional action as necessary. The next meeting is in May, but the Committee is prepared to reconvene earlier if needed.