Kenya Central Bank Governor Gets Buffers Ready for Fed Shock
- Monetary policy tightened in anticipation of Fed rate increase
- Central bank committed to flexible exchange rate system
Kenya Central Bank Governor Awaits Fed Rate News
This article is for subscribers only.
Kenya is ready to take action to protect the economy from potential market turmoil when the U.S. begins raising interest rates, having built up enough buffers to prepare for the event, central bank Governor Patrick Njoroge said.
While a rate increase in the U.S. has largely been priced in by financial markets, policy makers in East Africa’s largest economy will draw down reserves, adjust interest rates and tighten liquidity if there’s a currency shock, Njoroge said in an interview in Cape Town. Fiscal resources are also available to help cushion the blow, he said.