POSTPONED

CBK reschedules MPC meeting by two days

In Summary
  • This will be an extraordinary meeting, coming just a month after the one held late March. MPC usually sits every after two months.
  • Last month, it lowered the base lending rate to 7.25 per cent from 8.25 per cent to offset the negative effects of the coronavirus spread
CBK governor Patrick Njoroge
CBK governor Patrick Njoroge
Image: ENOS TECHE

Central Bank of Kenya (CBK) has pushed the upcoming  Monetary Policy Committee (MPC) meeting by two days to Wednesday next week,

The apex bank made the announcement on its website late Tuesday without giving reasons.

‘’The next meeting of the Monetary Policy Committee (MPC) will be held on Wednesday, April 29, 2020 and not April 27 as earlier stated,’’ CBK said.

 

This will be an extraordinary meeting, coming just a month after the one held late March. MPC usually sits every two months.

The country is waiting to see which new monetary policy measures will be introduced by the regulator to cushion the economy from negative effects of coronavirus that has since caught up with almost 300 people in the country.

In the last MPC, lowered the base lending rate to 7.25 per cent from 8.25 per cent to offset the negative effects of the coronavirus spread.

The decision was aimed at minimising the economic and financial impact of the Covid-19  pandemic on businesses as well as individuals.

 “While the extent of the adverse effects of the pandemic on the Kenyan economy is still evolving, it is already evident that the impact may be severe,” CBK Governor Patrick Njoroge said during the last post MPC briefing.

The apex bank projected the virus to slash economic growth this year, from an estimated 6.2 per cent, to 3.4 per cent.

The meeting also reduced the Cash Reserve Ration to 4.25 per cent from 5.25 per cent, releasing Sh35.2 billion to banks for onward lending to borrowers, especially those distressed as a result of the coronavirus.