Kenya Central Bank Governor Njoroge on Thursday said that there is enough room to ease policy in Africa’s biggest economy as inflation hit government’s target range of 2.5-7.5 pct, coming in at 5.3 pct. Expectations have been fully incorporated; so there stands little chance for public expectations of rise in inflation.

"One can say comfortably that there is room to adjust from the tight monetary stance that was there," Njoroge said in an interview Thursday at the World Economic Forum on Africa in the Rwandan capital, Kigali.

The central bank revised its benchmark interest rate twice last year by a total 300 basis points to 11.5 pct, which has helped to curb inflation to a larger extent.

Liquidity in the financial system remains a 'big issue,' the Governor added. The shilling has gained nearly 2 pct against the dollar this year after sliding 11.3 pct in 2015; Bloomberg reported citing sources from the World Economic Forum.

The Monetary Policy Committee is set to meet on May 23 and it remains to be seen whether an easing policy is in place. Against the backdrop of a weaker global economy, the International Monetary Fund in April had cut its 2016 growth forecast for sub-Saharan Africa to 3 pct from 4 pct.