Kenyan central bank prepares further monetary policy reforms

Review recommends action to improve modelling, boost interbank market and develop education

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The Central Bank of Kenya plans to make fresh reforms to its monetary policy framework, after a review highlighted further room for improvement.

The CBK’s monetary policy committee found ongoing problems with policy transmission, particularly the “misalignment” of the policy rate and actual short-term rates in the market.

In its report on the proposals, the CBK says the problems are largely due to segmentation and inadequate levels of transparency in the interbank market. The system has been

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