The yield on the benchmark 10-year Treasury note fell below 2% for the first time since November 2016 on Wednesday — breaching a key psychological level.Bondsread more
The Fed came very close to promising a rate cut Wednesday, and now markets are focused on a possible July rate cut.Market Insiderread more
Markets had expected the central bank to keep its benchmark interest rate steady while setting up a cut at the July meeting.The Fedread more
Powell said policymakers are concerned about some of the recent economic developments and see a growing case for easier policy.The Fedread more
Amazon and Blue Origin founder Jeff Bezos gave more insight into his space company's lunar plans on Wednesday.Technologyread more
As the presidents of U.S. and China near a highly anticipated meeting on trade, the gap in both sides' expectations regarding a deal remains wide.World Politicsread more
Delta warned travelers that a technical problem could delay flights on Wednesday.Airlinesread more
The Fed chief said that despite reports that Trump was looking to demote or fire him, he doesn't plan on leaving anytime soon.The Fedread more
If the Trump administration and Congress fail to reach a spending agreement, the White House will offer to keep the government funded at its current levels for a year, Mnuchin...Politicsread more
With bold and targeted steps, economists say, government can increase opportunity and incomes for many more people in ways that strengthen, not weaken, American capitalism.Politicsread more
Investors need to be cautious because the economy will get hurt the longer the trade war drags on, Jim Cramer says.Mad Money with Jim Cramerread more
NAIROBI, June 6 (Reuters) - Kenyan Central Bank Governor Patrick Njoroge has been given a second and final four-year term in the job, as President Uhuru Kenyatta opted for continuity in the face of a private sector credit crunch and pressure to reduce government borrowing.
The Yale-educated economist, who advised the International Monetary Fund in Washington before taking up his post in June 2015, has been credited with stabilising the shilling and giving credibility to the government's management of financial affairs.
He has won plaudits from the market for his handling of the banking sector following the closure of two mid-sized lenders just months after he took over, and the capping of commercial lending rates in 2016.
"The Governor's reappointment will be seen as providing a stabilising hand," said Razia Khan, head of research for Africa at Standard Chartered in London.
Njoroge has also won praise for shunning the trappings of office in a country where officials often abuse state resources, using a modest official car and never moving to the sprawling governor's mansion in an upmarket part of Nairobi.
He faces the ongoing challenge of formulating monetary policy as a government-imposed cap on commercial lending rates takes its toll on credit growth and as calls grow for the government to reduce its budget deficit.
"From this perspective, experience and continuity will count for a great deal," Khan said.
The rate cap, introduced by the government in September 2016, has hammered private sector credit, which grew just 4.5% in the year to April -- well below the ideal growth rate of 12-15% according to the central bank.
Kenya's public debt as a percentage of gross domestic product (GDP) has risen to 55% from 42% when Kenyatta took office in 2013.
The government has defended the increase, saying the country must invest in infrastructure, including roads and railways.
Njoroge has warned that the space for increased borrowing is running out.
On Njoroge's watch, the Kenyan shilling has been one of the stablest emerging market currencies, rising 0.54 percent this year to 101.25/45, the second-best performer in emerging markets after the Egyptian pound.
"The message the market is emitting is that he is a very, very safe pair of hands," said Aly Khan Satchu, an independent trader and analyst.
But some criticised Njoroge for failing to deepen the local debt market, which still has no bond issuance calendar.
"In terms of market development, we have not seen much, sadly," said a senior trader at a leading commercial bank.
Njoroge has said his team has not accomplished all it had set out to do.
"There have been many successes, there have been many failures, there have been many sleepless nights," he told reporters last week.
One of his latest tasks included introducing new banknotes to curb a surge in suspicious transactions in the financial sector.
Kenyatta also re-appointed Deputy Governor Sheila M'mbijiwe and the chairman of the bank's board, Mohammed Nyaoga, to new four-year terms. (Additional reporting by Omar Mohammed; Writing by Duncan Miriri; Editing by Maggie Fick and Hugh Lawson)