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By Bloomberg

The Central Bank of Kenya raised its benchmark interest rate for the first time in 3 1/2 years, lifting it by more than economists forecast to help bolster the currency.

The Monetary Policy Committee increased the rate by 150 basis points to 10 percent in an unscheduled meeting, the central bank said in a statement e-mailed Tuesday from the capital, Nairobi. Ten of the 13 economists surveyed by Bloomberg predicted a 100 basis-point raise, while three forecast 50 basis points.

“Good move by the CBK, delivering even more than the market was looking for,” Razia Khan, head of Africa macroeconomic research at Standard Chartered Plc in London, said by e-mail. “It helps to restore the anti-inflation credibility of the CBK and should help the KES in the near-term.”

The MPC, which meets every two months, brought forward its July meeting after the shilling plunged to its lowest level against the dollar since November 2011, threatening to spur inflation already near the ceiling of the government’s 2.5 percent to 7.5 percent target range. The shilling weakened 7.3 percent against the dollar this year because of a drop in revenue from tea exports and tourism -- the two biggest generators of foreign-currency earnings.

“The emerging aggregate demand pressures and the persistent volatility in the global foreign exchange markets coupled with the projected recovery in international oil prices have implications on inflationary expectations,” the central bank said.

Inflation accelerated to 6.9 percent in May from 5.5 percent in January, according to the statistics office.

The MPC meeting was led by Haron Sirima, who has been acting governor since Njuguna Ndung’u stepped down as Governor in March. President Uhuru Kenyatta has nominated Patrick Ngugi Njoroge to replace Ndung’u pending confirmation by lawmakers.