Regulatory Alerts2016-10-25
Banking Circular No 4 of 2009 - Revision of CBR and Tenors for repo/reverse repo, late repo and term auction deposit facility
The Monetary Policy Committee of Kenya's Central Bank decided on May 21, 2009, to revise the Central Bank rate from 8.25% to 8.0%, effective immediately. Additionally, beginning May 25, 2009, liquidity management instrument tenors for Repurchase/Reverse Repurchase Agreements (Repo/Reverse Repo), late Repo, and Term Auction facility will be unified at a single tenor of 5 days only. The late repo will continue to be priced 100 basis points below the latest available average rate for early repo.
KENYA Haile Selassie P.O. Box 60000 Nairobi Telephone 226431 Telex 2 May 22, 2009 BANKING CIRCULAR NO. 4 OF 2009 TO: ALL CHIEF EXECUTIVES OF COMMERCIAL BANKS CENTRAL BANK RATE (CBR) 1.
REVISION OF: TENORS FOR REPO/REVERSE REPO, LATE 2.
AND TERM AUCTION DEPOSIT REPO FACILITY The Monetary Policy Committee met on 21st May 2009. Amongst other decisions, the committee agreed to revise the Central Bank rate from 8.25% to 8.0%. This change takes effect immediately.
In addition, the Central Bank has also reviewed the tenors of its liquidity management instruments. In this regard, with effect from 25th May 2009, the tenors for Repurchase/Reverse Repurchase Agreements (Repo/Reverse Repo), the late Repo and the Term Auction facility will be revised to a single tenor of 5 days only. The late repo will continue to be priced at 100 basis points below the latest available average rate for the early repo.
D A. NYAOMA DIRECTOR, BANKING SERVICES DEPARTMENT