Monetary Policy Committee Retains Key Rate at 11.50%

Secondary Market: Trading in the secondary market was mellow during Wednesday’s trading session as bond turnover contracted by 31% to KES 2.15 billion with a total of 48 bond deals transacted during the day. The Monetary Policy Committee retained its key rate at 11.50% as overall inflation remained within the target range.

Money Market: The money market remained significantly constrained as banks withheld liquidity. Consequently, the interbank rate shot up to 21.27% with a total of KES 22.74 volumes traded during the day. The USDKES firmed by 0.19% to 101.11 (12:30pm GMT) as traders held positions while the MPC meeting took place yesterday.

Upcoming Auctions

• 29th July 2015 – KES 3.0Bn 182 & KES 4.0BN 364-day T-bills

• 30th July 2015 – KES 1 Bn 91 day T-bills