Aggregates we are seeing in terms of import and export expansion among others are broadly in line with attaining the growth target of 6.1%. Though there have been blips on inflation, it is due to drought. Underlying inflation is 5.4% so there is no risk for monetary policy in the medium term and the economy will expand in line with projections.

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Indicators over the last five months do not point to any instability in the market. On the contrary, the exchange rate has averaged 1,813.20, a spread of about sh10, which is on target.

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