A bigger concern is that expectations for longer-term expectations are well above our 4.5% target, which may indicate that the initial supplyside shocks are feeding through into longer-run price and wage-setting behaviour – a phenomenon referred to as ‘second-round effects’.
Before making my remarks, let me take this opportunity to thank all the collaborating partners under the Financial Access Partnership (FAP), FinAccess Management comprising of Central Bank of Kenya (CBK) and the Financial Sector Deepening (FSD) Kenya as well as the FinAccess Secretariat based at the Research and Policy Analysis Department of the Central Bank of Kenya for making today’s launch possible.