September 18, 2018 – PEP’s Executive Director, Prof. Jane Mariara, has been selected by Kenya’s Cabinet Secretary for the Treasury and Planning to sit on the Monetary Policy Committee (MPC) for the Central Bank of Kenya (CBK).
Prof. Jane Mariara is one of four experts appointed as “external members” (i.e., not connected to the CBK) of the MPC. The external members are selected for their “knowledge, experience and expertise in matters relating to finance, banking and fiscal and monetary policy.”
The Cabinet Secretary released a statement announcing the appointment of the four external MPC members for a period of three years, effective August 24, 2018.
“I am humbled by this appointment and very grateful to the Cabinet Secretary for putting his faith in my abilities,” said Prof. Mariara.
The MPC is responsible for the formulation of monetary policy and, in particular, setting the Central Bank base rate. The MPC meets at least once every two months to review data and analysis from a variety of sources, including the Central Bank Departments. The committee then decides on any action to maintain or modify the Central Bank’s position with the aim of supporting the National Treasury’s economic growth and inflation targets. Specifically, Kenya’s monetary policy seeks to maintain a low and stable inflation rate over time, as an indication of price stability.
Prof. Mariara said: “I am pleased to be given the opportunity to personally put into practice evidence-based policymaking, which I consider very important and something I work to promote through PEP.”
The Committee is expected to closely monitor the impacts of the recent policy decision to lower the Central Bank Rate to 9.00% from 9.50%.