The upcoming monetary policy committee meeting slated for Monday next week will single out increasing the inflation level as a key agenda the Informer has established. The meeting being coordinated by the Central Bank of Kenya has raised concerns over the increasing cost of living as people get more impoverished.
The cost of basic commodities like fuel,cooking oil,soap and cooking gas have reached an all time high.
The Kenya Bankers Association (KBA)through its research unit,calls for policy tightening sees a justification for policy tightening to avert further inflation. on the ground of a risk of out-of-control inflation ahead of its meeting.
According to the Kenya National Bureau of Statistics, the price levels, a basic measure of yearly changes in the cost of living, rose to 6.47 percent in April from 5.56 percent the previous month.
Last September the inflation rate stood at 6.91 per cent, which was the highest rate ever. In a research paper, the banker’s lobby said, “Given the aforementioned consideration, we call on the MPC to consider tightening the monetary policy stance to rein in inflationary expectations and forestall the destabilizing impact of further weakening of the shilling on the macro economy.”
On a second note, NCBA predicts that the Central Bank would tighten monetary conditions to persistent strong price pressures.