Central Bank of Kenya to Announce Monetary Policy on May 27

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The Central Bank of Kenya (CBK) on Friday announced its next meeting of the Monetary Policy Committee (MPC) will be held on May 27.

The MPC in the previous meeting in April sharply cut its benchmark lending rate to 7.0 percent from 7.25 percent,  to cushion the impact of the coronavirus adversely affecting economic activities.

The April meeting was a build-up from the raft of measures announced in March to boost commercial banks’ liquidity and reduce financing costs for businesses during this crisis, including a 100bps reduction in the Cash Reserve Ration (CRR) and the Central Bank Rate (CBR).

During the period,  the MPC said 43.5 percent of the additional Ksh 35 billion liquidity from the reduction in CRR had been utilized for the partial restructuring of Ksh 81.2 billion loans.

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“We foresee the MPC taking a ‘wait and see’ approach as it observes the effects of the 25 bps rate cut seen in April 2020 sitting,” Cytonn Investments’ take.