Nairobi, June 9 -- The Central Bank of Kenya (CBK) kept its benchmark lending rate unchanged for the second policy meeting in a row at 8.75 percent amid the uncertainty triggered by the Iran war.

The decision to hold the Central Bank Rate (CBR) has left investors and banks in limbo on the direction of domestic interest rates that had started rising to cover the surge in inflation, and bankers expected the benchmark rate to increase.

CBK said it would monitor the impact of global oil prices on inflation, which rose sharply in ⁠April and May, driven by fuel price hikes triggered by the surge in global energy costs linked to the Iran war.

Inflation rose to 6.7 percent in May and is approaching the top of the government's preferred 2...