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Economy · Monetary policyPress ✓ 3 outlets · rates per the CBK

CBK holds its rate at 8.75% for a fourth meeting as inflation edges up to 6.8%

The Monetary Policy Committee kept the Central Bank Rate unchanged on Wednesday. September inflation rose from 6.6% in August but stays inside the target range.

The Central Bank of Kenya's Monetary Policy Committee kept the Central Bank Rate at 8.75% on Wednesday 7 October, the fourth meeting in a row without a change, according to the CBK's own site, The Kenya Times and Rio Times. Rio Times reported that inflation rose to 6.8% in September from 6.6% in August, still within the government's target band of 2.5% to 7.5%. The Kenya Times reported that the average commercial banks' lending rate was 14.4% in September, up from 14.3% in August, and that private-sector credit growth rose to 10.6% from 10.3%.

For borrowers, a hold means no relief on loan rates for now, while savers and the shilling keep the benefit of a higher rate. The decision arrives as oil prices and Gulf tensions threaten to push imported inflation up. DailyDrop has not seen the committee's full statement, only its summary as reported, and has not seen analysts' views on the October decision.

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By the numbers
8.75%Central Bank Rate, unchanged for a fourth meeting
6.8%September inflation, up from 6.6% in August (Rio Times)
14.4%average bank lending rate in September, per The Kenya Times
Kenya · HealthPress ✓ 3 outlets · counts from the Health Ministry as reported

Ten people linked to Kenya's first Ebola case quarantined as screening gaps come under scrutiny

Ten people linked to Kenya's first Ebola case have been placed in quarantine as concern grows over airport and border screening, according to the BBC, Reuters and The Kenya Times. The Kenya Times reports that the Ministry of Health has identified 57 contacts and has put flights from 10 countries under watch. Reuters says the case exposed gaps in border screening, after the patient, who flew in from Kampala on Saturday 3 October, was taken to Nairobi Hospital by relatives rather than flagged at the airport.

Officials have said the case was imported and that Kenya has no outbreak. DailyDrop has not seen any further confirmed case. The numbers of contacts changed quickly from 28 on Tuesday to 57 on Wednesday as tracing widened, so treat them as provisional.

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Word of the day
QuarantineHealth

Keeping people who may have been exposed apart from others, to see whether they become ill.


World · Middle EastPress ✓ 5 outlets · Houthi claims attributed

Houthi strikes on Saudi airports kill three, Riyadh says, as forces down a missile near the capital

The Houthis said they struck airports in Aden and Riyadh on Wednesday 7 October, according to DW, Al Jazeera, the Financial Times, the South China Morning Post and Le Monde. Al Jazeera reported that Saudi forces shot down a missile near Riyadh, and Le Monde that Saudi Arabia said it had intercepted missiles fired from Yemen. Yemeni forces separately launched an offensive to retake al-Waziiya in Taiz from the Houthis. Early on Thursday, Al Jazeera, Le Monde and the South China Morning Post reported that Saudi Arabia had confirmed three people killed in the strikes on its airports, and the SCMP added that dozens were wounded. DailyDrop has not seen a casualty count for Aden.

CNBC reported that oil rose as concerns over Houthi attacks on Saudi Arabia eclipsed signs that supply is recovering. WTI closed on Wednesday at US$88.28, down 1.30%, so the effect on prices was mixed. For Kenya the main points are the cost of fuel, which reaches the pump through the Energy and Petroleum Regulatory Authority's monthly review on the 14th, and the safety of the many Kenyans who work in Saudi Arabia. The Kenyan government had not, in the reports DailyDrop saw, issued advice to citizens there.

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In brief
  • S&P 500 7,801.77 (−0.22%), WTI US$88.28 (−1.30%), gold US$4,140.7 (−1.11%) at Wednesday's US closemarket data
  • US stocks pull back from their latest recordAP News
  • Gold slips as US dollar gains; investors await Fed minutesThe Business Times
  • Oman evacuates injured crew from tanker attacked in the Strait of HormuzAl Jazeera
  • Fed minutes: officials expect another rate hike this yearABC News (AP)
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Unverified — what we cannot confirm

"A video of a thunderstorm over Mecca shows a Houthi attack." Not true: AFP Fact Check says the video of a Mecca thunderstorm was falsely shared as a Houthi attack (AFP Fact Check, headline seen; platform not stated).
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INSIDECBK holds its rate at 8.75% for a fourth meeting as inflation edges up to 6.8%Economy · Monetary policyTen people linked to Kenya's first Ebola case quarantined as screening gaps come under scrutinyKenya · HealthHouthi strikes on Saudi airports kill three, Riyadh says, as forces down a missile near the capitalWorld · Middle East