MONEY MARKET ANALYSIS
Interbank lending recorded a strong improvement with the average traded volumes more than doubling to KES 17.48bn, up from KES 7.90bn, in tandem with a 121.2% jump in transaction count over the week. Meanwhile, the average interbank rate declined by 10.58bps to 9.70%, from 9.81%, reflecting market adjustments following the recent policy rate cut by the Central Bank. The table below summarizes the market liquidity indicators:
On a month-on-month basis, average monthly traded volumes appear to have picked up momentum in June, indicating a potential rejuvenation in market activity. See the chart below:
As the interest rates corridor drops further downwards, interbank rates continue to decline – as it should – given the ties with the benchmark rate. See the chart below;
