The Central Bank of
In the latest meeting, the
The committee noted that the overall month-on-month inflation increased slightly from 6.27 percent in
"The monetary policy operations adopted coupled with increased foreign exchange inflows through Diaspora remittances supported exchange rate stability. Specifically, the Kenya Shilling to US Dollar exchange rate continued to fluctuate within a narrow range in
The CBK increased its level of usable foreign exchange reserves from
"The build-up in reserves largely reflected the sale of foreign exchange to CBK by commercial banks," Ndung'u said.
The banking sector remains solvent and resilient as the annual growth in private sector credit stood at 22.66 percent in
The committee noted that the increased investor appetite for longer-dated domestic debt instruments has continued to lower refinancing risk in the domestic debt profile.
"The private sector credit growth is being monitored carefully to ensure that it does not trigger any demand inflation pressure or adverse inflationary expectations. In addition, the ratio of non-performing loans to gross loans decreased from 5.8 percent in
Activity at the Nairobi Securities Exchange (NSE) remained buoyant where the NSE-20 index stood at 4,945.78 at the end of
The private sector expects a strong growth in 2014 with inflation and the exchange rate remaining stable for the remainder of 2014 according to the
On the global scene, the committee noted that the global economy was projected to grow from an estimated 3.0 percent in 2013 to 3.6 percent in 2014 largely reflecting the continued recovery of advanced economies.
"Growth in the Eurozone had turned positive partly reflecting a pickup in domestic demand. Similarly, growth in Sub-Saharan Africa was projected to accelerate from 4.9 percent to 5.4 percent in the period. This outlook for the global economy is expected to benefit
However, the heightened
The latest data from the KNBS showed that the financial intermediation sector grew by 7.2 percent in 2013 compared with 6.5 percent in 2012. This contributed significantly to the 4.7 percent overall economic growths in 2013.
Most Popular Stories
- Shia LaBeouf Plea Deal, Alcoholism Treatment
- Ohio State Band Chief Fired After Probe
- Hispanic Leader Goes the Extra Mile
- Stop-Start Engines Save Gas, Reduce Emissions
- Jennifer Lopez, Pitbull to Perform at Fashion Rocks
- Ukraine Says Russians Firing Across the Border
- Ford Q2 Net Profit up 6 Percent
- U.S. Weighs Refugee Status for Immigrant Kids
- Ricky Martin Joins 'The Voice ... Mexico'
- Morgan Stanley Ponies Up $275 Million to Settle SEC Charges