By CHARLES MWANIKIMore by this AuthorCore inflation is likely to remain subdued in the short term as Kenyan consumers continue to struggle to access credit from the banking sector, analysts say. Demand-driven inflation (non-food-non-fuel) would normally go up when there is too much money in the economy chasing a few goods or services. “Demand side pressures are expected to remain mute, underscored by weak private sector credit expansion. Growth in private sector credit picked up to 2.4 per cent in December 2017 compared to two per cent two months earlier. Banking sector adjustmentFurther weakness in credit markets may stem from the banking sector’s adjustment to credit risk treatment under the IFRS 9 regulatory framework,” said Commercial Bank of Africa (CBA) economists in a note on inflation.

Source: Daily Nation February 06, 2018 06:22 UTC