Most people recognise a turning point or a tipping point only with hindsight. The Central Bank of Kenya’s last monetary policy committee (MPC) decision on May 28,2018 set the pace on how modern macroeconomic policy mix and coordination relates to Kenya, how we can build consensus on the monetary and fiscal sides, scale up periodic reviews, and target predictable results for the medium-term.
It proposed easing of monetary policy and tightening fiscal policy, premised on analyses from past and prevailing economic conditions for medium-term growth and stability. That is why current developments on Kenya’s fiscal side looked ominous in the run-up to the MPC meeting of July 30, by taking chances and contradicting the policy mix.
