Kenya’s monetary policy framework under threat – IMF
New interest rate caps are “constraining” the central bank’s ability to conduct monetary policy
The International Monetary Fund has condemned the Kenyan government's latest actions to enforce interest rate controls, stating it "further constrains" the central bank's ability to conduct monetary policy.
In the first review of its standby agreement with the African nation, published on February 2, the fund said the adoption of interest rate controls would have a number of adverse impacts on the entire banking system, including transparency, profitability and the ability to access credit.
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