Central Bank of Kenya to Announce Monetary Policy on July 29

Kenya’s Diaspora Remittances Rise 12% to Ksh 31.1B in June

The Central Bank of Kenya (CBK) says its next meeting of the Monetary Policy Committee (MPC) will be held on July 29.

At its last meeting in June, the bank left its benchmark lending rate unchanged for the second time in two months at 7.0 percent.

The MPC in a bid to support the economy met five times reducing the Central Bank Rate CBR) to 7.00 percent from 8.25 percent at the beginning of the year.

According to Cytonn Investments, they rate security and inflation as positive, investor sentiments (neutral) and government borrowing, exchange rate, interest rates, and GDP  as negative. 

“We have switched our outlook on the 2020 macroeconomic environment from positive to negative depending on how fast the Coronavirus is contained,” the analysts note in their Cytonn H1’2020 Markets Review.

Consequently, most market analysts view a neutral stance from the MPC.

“We view fuel inflation continuing its uptrend in the near-term in light of the global oil price rally last month. That said, we think the current environment will depress consumption and keep a lid on both headline and core inflation. We further hold the view that the anchored inflation will help maintain a neutral monetary policy stance in the near-term,” says Genghis Capital.

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