In a recent address in Côte d'Ivoire, International Monetary Fund (IMF) chief Kristalina Georgieva warned of a $3.7 trillion global production loss spanning 2020 to 2023 due to the impacts of the pandemic. She noted that only the US has managed to regain its pre-pandemic economic status. Georgieva emphasized the potential economic fragmentation risks for developing nations, particularly in Africa, due to disparities in policy space and macroeconomic fundamentals.
An IMF decision set for December will reevaluate its quota system for borrowers. This reassessment will take into consideration factors such as GDP size, market openness, and reserve quantity. Any changes could potentially alter the US share and China's quota, as per reuters.org.
A day earlier, on Thursday, the World Bank Group expressed support for the Central Bank of Kenya's (CBK) decision to halt its policy tightening cycle. The endorsement came as inflationary pressures began to ease, falling below the government's upper ceiling. This trend is not exclusive to Kenya, with similar situations observed in South Africa and Uganda.
The CBK's benchmark lending rate has remained consistent amidst a decline in headline inflation from 9.6 percent in October 2022 to 6.8 percent in September this year. Fuel inflation, influenced by the Energy and Petroleum Regulatory Authority's maximum pump price review, has played a significant role in this trend.
Despite these changes, non-food, non-fuel or core inflation has remained stable at 3.7 percent. This stability is largely attributed to monetary policy measures and ongoing harvests, along with government measures.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.