Investors should anticipate more stability in lending rates, even as expected fluctuations in forex and the tax environment continue to shape the operating environment, Standard Chartered in the latest global Market Outlook Report for 2024 advises.
- Last year, Kenya’s Central Bank moved to push lending rates to a 10-year high of 12.5 per cent in efforts aimed at stabilizing the shilling and curb inflation.
- Taking que from the apex lender, local banks have adjusted their rates burdening borrowers currently grappling with the high cost of living.
- According to figures from the Kenya National Bureau of Statistics, Inflation in January shifted to 6.9 per cent from 6.6 per cent reported in December.
Key drivers include increase in prices of commodities under Transport (10.6 per cent); Housing, Water, Electricity, Gas and other fuels (9.7 per cent); and Food and Non-Alcoholic Beverages (7.9 per cent).
“For many, this will mean taking prudent steps to retain investments and look for long term returns,” said Paul Njoki, Head, Wealth Management, East Africa, Standard Chartered
The 2024 Outlook Report represents Standard Chartered’s that investing in 2024 is likely to be influenced by investors balancing the evolution of the macro scenario. The Report, titled “Sailing with the Wind” finds that the US and other major economies are likely to witness sharply slower growth and sliding inflation in 2024.
- The report finds that US and other major economies are likely to witness sharply slower growth and sliding inflation in 2024.
- Equity and bond markets are expected to start 2024 positively, supported by hopes of a soft landing and central bank policy shifting towards supporting growth, but it remains on watch should macro winds shift towards a harder landing.
- Standard Chartered advises that investors should anticipate more stability in lending rates, even as expected fluctuations in forex and the tax environment continue to shape the operating environment.
Food, Power and Commodity Prices Drove Up Cost of Living in January-KNBS – Kenyan Wallstreet
