MONEY MARKET ANALYSIS
In the money market, interbank lending activity improved with the volumes traded rising by 27.9% to KES 19.65bn from KES 15.36bn, alongside a 57.7% surge in transaction count. However, banks lent to each other at a higher average rate of 10.7%, up 12.10bps from the previous week’s 10.5%.
The table below summarizes the market liquidity indicators:
So far, we observe a notable decline in volumes traded for the month of February compared to January. 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;
