Reuters logo
Kenyan shilling steady, eyes on rate decision
March 4, 2014 / 9:37 AM / 4 years ago

Kenyan shilling steady, eyes on rate decision

NAIROBI, March 4 (Reuters) - The Kenyan shilling held
steady on Tuesday, with market players expecting the currency to
weaken should the central bank surprise the market by cutting
its key lending rate.
    At 0801 GMT, commercial banks quoted the shilling at
86.30/50 to the dollar, from 86.35/45 at Monday's close.
    The Monetary Policy Committee has held its lending rate at
 at 8.50 percent at its past four meetings,
including at the last one held in January.
    "I think they will hold rates unchanged. It's already been
priced in, they hold rates unchanged, currency doesn't move
anywhere; we still stick to the range of 86.10 to 86.60," a
senior trader at one commercial bank said.
    A rate cut would see the shilling easing.
    "If there is a rate cut, that impact can be immediate. By
tomorrow we could see the market moving towards 87," said Andlip
Nazir, senior trader at I&M Bank.
    "If the decision is a hold, then gradually we will see the
dollar going towards 87."
    Nazir said that the shilling was still under weakening
pressure from some dollar demand carried over from the end of
February, and from falling overnight interbank lending rates due
to increased shilling liquidity in the money markets.
    The weighted average interbank lending rate fell to 7.7604
percent on Monday from 8.4488 percent on Friday.
    "If they do a (rate) hold, still we could see the shilling
weakening because the liquidity in the market is quite good.
There is a lot of money in the market," he said.
               ...........................Shilling spot rates 
                  .....................Shilling forward rates 
                           .......................Cross rates 
         ..................................Local contributors 
           .......................Central Bank of Kenya Index 
          .....................Kenyan Bonds contributor pages 
                          ...............Treasury bill yields 
        ..................Central bank open market operations 
        .........................Horizontal repo transactions 
         ,       ................Daily interbank lending rate 
              .............................Kenya Bond pricing 
             ..................Real time Africa economic data 
 <ECI & AFR> ...........................African economic news
          .................................NSE-20 Share Index
         .................................NSE All Share Index
             ...........................FT NSE Kenya 15 Index
             .......................... FT NSE Kenya 25 Index
  SPEED GUIDES:
                                    
            
 

 (Reporting by George Obulutsa; Editing by James Macharia and
Alison Williams)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below