As the economic impact of COVID-19 becomes more apparent, all attention is now on the CBK as Kenyans wait to see what support will be offered after next week’s Monetary Policy Committee (MPC) meeting. During the last bi-monthly meeting, MPC urged commercial banks to lower their loan rates. This was to keep up with the underperforming economy of the country during this period.
Central banks around the world have rolled out support to manage the economic crisis that could be fast approaching.
Analysts from Cytonn recommend giving corporate tax breaks, affordable credit and releasing funds for business stabilization so that companies are able to cope with the massive economic toll that the pandemic will take.
CBK, in its attempt to stay ahead of the possible economic crisis, plans to borrow Kshs 40.5 bn from banks to cushion its dollar reserves. There may also be need for the CBK to liaise with IMF to get more funding should the outbreak worsen.
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