Kenya's central bank says staying out of repo market

NAIROBI: Kenya's central bank said on Wednesday it would not be mopping up any shilling liquidity through repurchase agreements a day before, attributing its decision to tightening of liquidity after previous mop ups.

"The analysis by CBK (Central Bank of Kenya) shows that the market is square," the bank said in a notice on the ThomsonReuters trading systems.

The central bank, which was heavily criticised last year for being slow to rein in inflation and shore up the tumbling shilling, has so far this year hoovered up a total of 25.6 billion shillings ($298.2 million) and sold dollars, helping to stem the shilling's fall in early 2012.