Money Market Analysis
In the money market, the interbank lending rate kept sliding as the impact of recent monetary action took shape. Banks lent to each other at an average of 10.5%, down 35.66bps from the previous week’s 10.9%. Meanwhile, trading activity picked up by 7.6% to KES 15.36bn from KES 14.29bn, signaling a liquidity squeeze losing its grip.
The table below summarizes the market liquidity indicators:
See below a visual chart of the interbank market trends so far;
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;
