Kenya Shilling Falls Ahead of Central Bank’s Special MPC Meeting

14 Sep

Kenya’s shilling weakened ahead of a special meeting of the Central Bank of Kenya’s Monetary Policy Committee today. The shilling declined 0.3 percent against the dollar to 94.70 as of 8:35 a.m. in Nairobi. It closed at 94.45 yesterday after trading at a 17-year low of 95.80 earlier in the day.

The worst regional drought in 60 years has fueled price pressures in East Africa’s biggest economy, triggering a 15 percent slide in the shilling against the dollar this year. The central bank left its key rate unchanged at its previous meeting in July, defying economists’ expectations of an increase. The bank has instead adjusted its discount window rate, which is the cost commercial lenders pay to borrow from the central bank, several times since June to tighten liquidity.

the Central Bank and the governor are under pressure to increase the benchmark rate to restore confidence in the central bank after a series of monetary policy decisions that were reversed this year.

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One Response to “Kenya Shilling Falls Ahead of Central Bank’s Special MPC Meeting”

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  1. Untold version about the tumbling shilling — Rokea Press - October 9, 2011

    […] Kenya Shilling Falls Ahead of Central Bank’s Special MPC Meeting (momentblogger.wordpress.com) […]

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