Macro Forum: The Street View
KENYA MACRO INSIGHTS
The outlook for Kenya’s economic activity remains robust with a range of sectors continuing to expand and moderate inflation. In October of 2019, the Kenyan government announced a repeal of an interest rate lending cap, which had curtailed growth in private credit and the mortgage market. In addition to redressing private lending, the move has been well received by the IMF, who hinted at the potential for a new precautionary stand-by arrangement, adding to the economy’s insulation from exogenous shocks. Meanwhile, inflation is projected to remain low, increasing slightly to 5% in 2020, from 3% at the end of 2019. Interest rates are forecast to trend towards 10% in 2020 from a 22% peak in 2018, and over 15% last year, providing support to growth over the near term.
|Q2 2019||Q3 2019||Q4 2019||Q1 2020||Q2 2020|
* Year on Year
Real GDP Growth
Kenya FX vs FV
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