policy stance was having the intended effect on the economy.
A Reuters poll of seven economic analysts had forecast that the rate would be held.
As with other central banks worldwide, Kenya's central bank put in place a range of easing measures at the start of the coronavirus pandemic in March and April to try to contain damage to the economy caused by the crisis.
"The (Monetary Policy Committee) noted that the package of policy measures implemented since March were having the
intended effect on the economy," the bank said in a statement.
Since March the bank has cut the benchmark lending rate by a total of 125 basis points, slashed cash reserve requirements for commercial banks and allowed them to restructure distressed loans.
The central bank said commercial banks have so far restructured 1.38 trillion Kenyan shillings ($12.57 billion) in loans, equivalent to 46.5% of the total outstanding of 2.97 trillion shillings for the industry, helping borrowers hit by the impact of the pandemic.
The finance ministry forecasts the economy will grow 0.6% in 2020, and 6.4% in 2021, while the World Bank sees the economy contracting by 1.0-1.5% this year, then rebounding to grow 6.9% next year.
Like other economies around the world, the East African nation has suffered from effects of the coronavirus pandemic. Its second-quarter output declined for the first time since the global financial crisis of 2008.
The COVID-19 pandemic has also worsened the government's budget deficits as revenues decline because of disruptions for businesses and temporary tax cuts introduced in April to shore up demand.
The central bank said will hold another rate-setting meeting in January.
($1 = 109.8000 Kenyan shillings)
(Reporting by George Obulutsa; Editing by Tom Brown)
By George Obulutsa and Omar Mohammed
