The Various Average Rates and What They Mean
According the Central Bank of Kenya’s (CBK) website as at the close of business on Thursday, the various interest rates in the economy are as follows: Rate % Date Inflation 13.06 Apr-12 Central Bank Rate 18 04-Apr-12 T-Bills (91) 15.93 23-Apr-12 T-Bills (182) 14.775 07-May-12 T-Bills (364) 16.915 09-Apr-12 Interbank…
Results of Yesterday's CBK Auction
Yesterday the Central Bank of Kenya (CBK) auctioned 182 day and 364 day Treasury bills worth KES 4 billion. For the shorter dated bill the bank received 145 bids amounting to KES 4.6 billion which represents a subscription of 232%. For the one year bill, the bank received 126 bids…
Investors Hope for Longer Term Bonds
Kenyan Treasury bill yields are expected to continue their decline after inflation fell in April and the Central Bank of Kenya (CBK) held its key lending rate. In lieu of this, investors are hoping for longer-dated bonds with the expectation that the CBK will finally cut the Central Bank Rate…
Kenyans to Buy Bonds Through the Phone
According to the Daily Nation Kenyans will soon be able to buy government debt including Treasury Bills and bonds using their mobile phones, according to a project dubbed, ‘Treasury Mobile Direct’, launched by the World Bank and Central Bank. The scheme aims to capitalise on the popularity and success…
Monetary Policy Stance to Remain at 18%
Central Bank Rate to remain at 18%
Interest on loans to remain high.
MPC Expected to Maintain CBR
The Central Bank of Kenya’s Monetary Policy Committee (MPC) is expected to hold a meeting today. The Central Bank’s principal objective is the formulation and implementation of monetary policy directed to achieving and maintaining stability in the general level of prices. The aim is to achieve stable prices – that…
CBK to Auction KES 3 Billion Worth of T-Bills
The Central Bank of Kenya (CBK) will today auction 182 day Treasury Bills worth KES 3 billion. This comes after last week’s auction of Treasury Bills and a Treasury bond worth KES 2 billion and KES 5 billion respectively. Last week the Treasury bills were oversubscribed by 137% while the…
CBK Weekly Bulletin Simplified
According to the Central Bank of Kenya’s weekly report the interbank rate, the cost at which commercial banks borrow from one another, increased to 19.31% up from 15.41% the previous week. This is attributed to tight liquidity due to tax payments being made by corporations. To understand how this affects…
292% Oversubscription on 91-day T-Bills
The Central Bank of Kenya last week had two sales, one for 91-day treasury bills and the other for 182-day treasury bills. The 182-day treasury bills on offer amounted to KES 2 billion shillings and the CBK received 125 bids (122 bids accepted) amounting to KES 2.74 billion,…
What to Look for in the CBK Weekly Bulletin
The Central Bank of Kenya releases a weekly bulletin every Friday. This bulletin is more of a digest as it contains quite a bit of information on the performance of the money market over the week. However it is important to know exactly what to look out for in the…
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