The Central Bank of Kenya (CBK) top policy-making organ, the Monetary Policy Committee(MPC), is expected to have the Central Bank Rate (CBR) unchanged at 7% when it meets this Wednesday, 28th July 2021. It will be the 9th time the MPC is holding the CBR steady.
CBK last retained the CBR at 7% in May
According to Genghis Capital, inflation expectations remain anchored despite some upward bias on account of the base effect of this quarter.
COVID-19 still poses a layer of uncertainty, with the cumulative total number of cases reported at 197,000 as of 25th July 2021.
” Thus, we are of the view that policy makers will pencil in sluggish growth due to COVID-19 fallout,” said a Research Note from Genghis Capital.
The World Bank and International Monetary Fund (IMF)-have slashed Kenya’s 2021 growth projections with their reports indicating that Kenya’s economic recovery will depend on how fast it rolls out the COVID-19 vaccination program.
Keenly watched will be inflation figures to be released on 30th July 2021 and the results of the Weekly Treasury Bills Auction, to be held this Thursday.