The Central Bank of Kenya monetary policy committee will meet on Thursday to its review the prevailing macroeconomic conditions and give direction on the Central Bank Rate (CBR).
Analysts are of the view the Central Bank Rate (CBR) would be held at 10 percent.
“The key risk lies in the depressed economic growth that came in at 5.0 percent in Q2’2017, lower than the 5.8 percent in 2016, coupled with the subdued private sector credit growth, which came in at 1.6 percent as at August, way below the government set annual target of 18.3 percent, and this trend may well adversely impact on economic growth, which we believe will be a key driver in future monetary policy decisions,” notes Cytonn Investments.
The Investment Analysts also note that the MPC should adopt a wait and see approach, given the macroeconomic environment is relatively steady, despite the political uncertainty witnessed.
The Country’s inflation declined to 5.7 percent in the month of October from 7.1 percent in September, due to improved weather conditions.
The YTD average inflation rate is 8.7 percent, compared to 9.3 percent at the time of the last MPC meeting and 6.3 percent in the same period last year.
MPC changed the CBR in September last year, from 10.5 per cent to 10 per cent.