MPC Retains Central Bank Rate at 11.5 Percent

Secondary Market: Bond turnover rose by 146% to KES 990 million yesterday as investors returned to the secondary market. The Monetary Policy Committee (MPC) yesterday retained its CBR at 11.50% as expected by most market players. The committee also noted that it will continue to use instruments at its disposal in order to maintain price and financial sector stability in the market.

Money Market: The monetary regulator stayed out of the money market during yesterday trading session as liquidity in the money market remained robust. Meanwhile, the Kenyan shilling rallied against the greenback by 0.05%, to close the trading session at 102.28, despite positive sentiment on the Core Consumer Price Index (MoM) -which would influence the US Federal rate hike. The local currency also made significant gains against the Euro, with a 0.74% increase to 108.98; as the Euro lost against its own basket of currencies, most notably hitting a 7-month low against the dollar.

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