MONEY MARKET ANALYSIS
Interbank lending slowed down during the week with the traded volumes sliding 48.4% to KES 6.26bn from KES 12.12bn, in the previous week, in tandem with a 33.3% fall in the number of transactions. Reflecting the same, the average interbank rate rose slightly to 10.68% from 10.65% the prior week. The table below summarizes the market liquidity indicators:
During the week, the Central Bank mopped approximately KES 118.19bn worth of liquidity from the market, a 33.2% decrease from last week’s KES 176.95bn. The amount fell below the target of KES 165.0bn with the average rate coming in at 10.75%. See below a visual chart;
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;
