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Will banks cut interest rates?
Your Daily Dose of Financial
Hello đź‘‹
It's Brian from The Kenyan Wall Street.
Welcome to today's edition of our daily newsletter…
What's on today
🏦 Citi Sees Lending Rates Easing
The Kenyan market will soon start feeling the impact of Central Bank’s Monetary Policy’s recent action to cut lending rates, Citi Bank says, predicting that most banks will soon start communicating adjustments to customers. During the last meeting of the year, Monetary Policy Committee cut the base lending rate to 11.25 per cent from 12 per cent in the last meeting. The process of determining lending rates is guided by risk-based credit pricing model, in which each bank assesses the borrower’s risk profile and adjusts the loan interest rate accordingly. Loan pricing is influenced by a bank’s base rate as well as a customer-specific risk premium. Also read why Citi Bank thinks Kenya will opt for Eurobond alternatives…
🌽 Concerns as Food Prices Rise Days to Christmas
The Kenyan market is jittery about the increases in price of food and non-alcoholic beverages even as majority doubt impact of inflation which has been easing for the better part of the year. In a market perception survey conducted by the Central Bank of Kenya, 43 per cent of respondents from banks and non-banking institutions link the rise in food and non-alcoholic beverages to the seasonal demand during the festive period. The latest Consumer Price Index (CPI) by the Kenya National Bureau of Statistics (KNBS) indicates that Food and Non-Alcoholic Beverages Index increased by 0.6 per cent between October 2024 and November 2024. In particular, prices of sugar, maize flour-sifted and fortified maize flour rose by 5.3, 5.1 and 4.9 per cent, respectively, between October 2024 and November 2024, which provides national average prices of selected items. This article explains the CBK November Market Perception that gauges expectations on inflation…
🖥️ KIXP Partners with iXAfrica Data Centers
In a transformative step toward enhancing internet connectivity across East Africa, the Kenya Internet Exchange Point (KIXP) has established a new peering Point of Presence (Pop) at the premier iXAfrica Data Centers NBOX1 facility. As the only hyper-scale data center in East and Central Africa, iXAfrica cements its position as the backbone of the region’s rapidly evolving digital ecosystem.With East Africa’s population nearing 500 million mark and internet penetration reaching over 35%, the demand for faster, reliable, and affordable internet services is unprecedented. The partnership aims to enhance Network Efficiency, Foster Regional Growth, and Reduce Internet Costs. More on this partnership here…
Stories that dominated the week
Opinion and Commentary
Video of the Day
In this Episode of Investing Like an Executive, Andrew Barden, CEO of The Kenyan Wallstreet, sits down with Linda Ndungu, General Manager for Bolt Kenya.
Have a lovely weekend