Age of volatility is back, says Kenya bank chief

Bloomberg

Volatile times are back on the global economic scene with the US appearing to lack clear policy and growth in Europe slowing, the Kenyan central bank governor said.
Comments by members of the US government have undermined the Federal Reserve’s role as an anchor of monetary policy, Governor Patrick Njoroge said. Other key concerns include the threat of a no-deal Brexit and worsening global trade due to the US-China trade war, he told reporters in the capital, Nairobi, a day after the monetary policy committee maintained its benchmark rate at 9 percent.
“The global economy is without a rudder and hence the negative outlook,” Njoroge said. “It is clear we are back in the age of volatility.”
The central bank reduced its estimate of 2018’s economic growth to 6.1 percent from 6.2 percent and forecasts expansion this year at 6.3 percent, supported by the agriculture and services sectors. While Kenyan investor and consumer confidence is “quite strong,” the external sector is worrying and the state should take actions to protect the economy, he said.
The $81.3 billion economy is operating at capacity, with most industries operation close to maximum output, Njoroge said.