Aggregates we are seeing in terms of import and export expansion among others are broadly in line with attaining the growth target of 6.1%. Though there have been blips on inflation, it is due to drought. Underlying inflation is 5.4% so there is no risk for monetary policy in the medium term and the economy will expand in line with projections. |
Exports have been in line with projections with evidence that actual values have increased while imports have also increased, which shows that business is going on as usual. Activity in the market does not reflect any concerns. |
Indicators over the last five months do not point to any instability in the market. On the contrary, the exchange rate has averaged 1,813.20, a spread of about sh10, which is on target. |