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US interest rates cuts won’t solve Kenyan asset problems, analysts say
A key reason why falling US rates won’t boost Kenyan assets as much as might be expected is that the historical driver of this positive trend doesn’t look set to change much.
The US is poised to cut interest rates for the first time since 2020 on Wednesday, with traders betting on the Federal Reserve acting aggressively to reduce borrowing costs in a trend that has historically helped assets in Kenya and other emerging markets.
This time will be different, financial experts say. While a fall in US rates could encourage inflows to Kenya, the trend is expected to be much milder than seen in past cycles.
