Other countries are also assumed to experience disruptions to economic activity related to containment measures and social distancing, which, on average, are assumed to entail a loss of about five per cent of working days. This is the lowest projection so far after the Central Bank of Kenya(CBK) in March cut its 2020 economic growth forecast from an initial estimate of 6.2 per cent to 3.4 per cent. “Depending on the duration, global business confidence could be severely affected, leading to weaker investment and growth than projected in the baseline,” IMF says. CBK last month lowered its base lending rate to 7.25 per cent from 8.25 per cent. It also released Sh35.2 billion, with a cut on Cash Reserve Ratio (CRR) to 4.25 per cent from 5.25 per cent.

Source: The Star April 16, 2020 08:15 UTC