IMF encourages Kenya central bank to set-up forecast unit
Staff report tells central bank to ‘stand ready to tighten’ monetary policy
The Central Bank of Kenya should establish a dedicated forecasting unit in its research department, according to an IMF staff report published today, as it continues on the path towards a formal inflation targeting framework.
As it stands, the central bank sets monetary policy with a view to keeping annual CPI inflation at 5%, with an acceptable deviation of 250 basis points either side, but the legislation underpinning its objectives is viewed as piecemeal and – in places – unclear.
The
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