Economists at Standard Chartered expect a 50bps cut to 6.5% by the Central Bank of Kenya (CBK) at the May meeting (100bps prior). The USD/KES pair is trading at 107.50, near to yearly highs.
“We expect the CBK to cut its central bank rate (CBR) 50bps at its May monetary policy committee (MPC) meeting; previously, we expected more front-loaded easing of 100bps. This follows the CBK’s unscheduled meeting in April, at which it cut the CBR by only 25bps to 7.0%.”
“We expect more measured cuts of 50bps at each meeting in May, July, September and November, still leaving our year-end CBR forecast at 5.0%.”
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