Regulatory Alerts2016-07-13 | 1202985388Banking Circular No 4 of 2011 - Revision of the Cash Reserve Requirement and the Central Bank Rate
The Monetary Policy Committee raised the Cash Reserve Requirement and Central Bank Rate, with changes taking effect immediately. The late repurchase agreement tenor will be reduced from seven to four days, and the rate will be 100 basis points below the early repo rate average. This announcement was made by the Bank of Kenya on June 2, 2011.
BANKI KUU YA KENYA BANK OF KENYA Haile Selassie Avenue P. O. Box 60000 - 00200 Nairobi, Kenya Telephone: 2860000, Fax: 340192 2nd June 2011 BANKING CIRCULAR NO. 4 OF 2011 TO: ALL CHIEF EXECUTIVES OF COMMERCIAL BANKS REVISION OF THE CASH RESERVE REQUIREMENT (CRR) & THE CENTRAL BANK RATE (CBR) The Monetary Policy Committee (MPC) at its meeting on 31* May 2011 reviewed and raised the Cash Reserve Requirement (CRR) by 25 basis points from 4.5% to 4.75% and CBR upwards from 6.00% to 6.25%.
In addition, the tenor for late repurchase agreement (repo) which has hitherto been fixed at seven (7) days will now be available for four (4) days at 100 basis points below the average for the early repo rate.
All the above changes take effect immediately.
JACKSON M. KITI DIRECTOR, BANKING SERVICES, NATIONAL PAYMENT SYSTEMS & RISK MANAGEMENT DEPARTMENT