News & Notices

The Investor Roundtable

By:ICSIA            2011-08-01

Inflationary pressures continue to persist in July having risen from 12.95%, the previous month, to 14.45% presently. As a result, bond yields have experienced increased volatility as market players attempt to realize higher bond yields to cushion against rising inflation. In addition, general market liquidity has declined, further contributing to interest rate pressures. It is in this environment that the Central Bank of Kenya (CBK) temporarily raised the CBR (lender of last resort rate) from 6.25% to 8%; accusing commercial banks of diverting CBK borrowings to currency speculation as a means of dealing with the high inflation and low liquidity environment in which banks find themselves disadvantaged with Read File