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In the march 2020 MPC release, the BOG Outline 3 monetary policy measures to increase the potential impact of the covid-19. These measures include;
i) Reducing the policy rate by 150 basis points
ii) Reducing the required reserve ratio; and
iii) Reducing the fees on cash transactions, eg mobile money
- Categorize the measure into the traditional and non- traditional approach to MP of the CB.
- What are the potential effects of the various measures on the economy?
- What may be the merit and demerits of each measure?
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