MONEY MARKET ANALYSIS
Interbank lending dipped by more than half, following a week of recovery as traded volumes jumped 60.4% to KES 8.66bn from KES 21.85bn, in the previous week. Deal numbers echoed the decline, decreasing by 35.1%. On the flip side, the average interbank rate has remained relatively stable, inching up marginally to 10.69% from 10.69% the week before. The table below summarises the market liquidity indicators:
During the week, the Central Bank mopped KES 251.3bn worth of liquidity from the market, a 1.7% increase from last week’s KES 241.13bn. The amount fell below the target of KES 320bn with the operations average rate coming in at 10.75%. See below a visual chart;
The weighted average interbank rate has closely tracked the Central Bank Rate, underscoring the stability and effectiveness of the monetary policy framework. See the chart below;
