MONEY MARKET ANALYSIS
Interbank lending pulled back even more this week, extending last week’s slump as traded volumes dropped another 18.5%, sliding to KES 11.79bn from KES 14.46bn. Deal numbers echoed the slowdown, dipping by 6.9%. On the flip side, the average interbank rate barely budged, ticking up to 10.70% from 10.69% the week before. The table below summarises the market liquidity indicators:
The month of March kicked off at a rather slow note with the average interbank volumes traded remaining below historical levels. See below a visual chart of the interbank market trends;
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;
