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.
Key quotes
“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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