The Central Bank of Kenya (CBK) undertakes a Market Perceptions Survey, prior to every Monetary Policy Committee (MPC) meeting to obtain perceptions of banks and non-bank private sector firms on selected economic indicators including inflation, economic growth, demand for credit, growth in credit to private sector and exchange rate. The Survey also enables respondents to indicate their levels of optimism in the country’s economic prospects and business environment, and perspectives on the current and expected economic conditions, focusing on economic activity and employment. It also captures suggestions by private sector firms on ways to improve the business environment.
The Key takeaways from the May 2021 Market Perceptions Survey included:
- Sustained optimism in the country’s economic prospects over the next 12 months, largely attributed to the rollout of the COVID-19 vaccine, but uncertainties remain with regard to COVID-19 pandemic.
- Expectations of improved economic activity in May and June relative to March and April with the easing of the COVID–19 restrictions.
- Upward revision of economic growth expectations for 2021 relative to the previous survey, largely due to expected rebound in all sectors that had been affected by COVID -19 in 2020.
- Mixed expectations by different sectors on employment in 2021 relative to 2020, largely due to the uncertainties on the pace of post-COVID-19 recovery.
- Expectations of increase in private sector credit growth in 2021 by banks with pick-up in economic activity
- Inflation expectations remain anchored in the next two months and one year due to low food prices, despite increasing fuel prices.
Read full report here…