Money Market Analysis
Liquidity conditions in the money market kicked off the year on a stable note with the average lending rate remaining relatively unchanged at 11.1%. Similarly, interbank volumes surged by more than half, recording a 52.3% jump to KES 34.58bn from KES 22.72bn, alongside a 15.0% increase in transaction count.
The table below summarizes the market liquidity indicators:
In its open market operations, the Central Bank of Kenya mopped up over KES 60bn from the interbank market, with offers being oversubscribed cumulatively. The trades were executed at an average rate of 11.2%, closely aligned with the benchmark rate.
That said, the weighted average interbank rate has remained closely aligned with the Central Bank Rate (CBR). Actual highs and lows have stayed firmly within the interest rate corridor, underscoring a stable and responsive monetary policy environment.
See the chart below;
