During the first half of 2020, an accommodative monetary policy stance was adopted to cushion the banking system from the adverse effects of the COVID-19 pandemic. In March 2020, the Central Bank of Kenya (CBK) reduced the Central Bank Rate (CBR) to 7.25 per cent, from 8.25 per cent in February 2020 and 9.00 per cent in December 2019. In its efforts to support the economy, the CBK further lowered the CBR to 7.00 per cent in April 2020 and made it remain at this level till the end of the year. During the review period, the CBK in consultation with commercial banks agreed on emergency measures on extension and restructuring of loans to cushion borrowers from the adverse economic effects of the COVID-19 pandemic. As a result of reduction in the CBR by the Central Bank of Kenya, there was a general decline in the interest rates during the review period. The lending rate for commercial banks' loans and advances reduced from 12.24 per cent in December 2019 to 12.02 per cent in December 2020, while the average deposit rate reduced to 6.30 per cent in December 2020 from 7.11 per cent in December 2019. The savings rate of interest reduced to 2.70 per cent in December 2020 from 4.02 per cent in December 2019. The interbank rate increased from 2.98 per cent in June 2019 to 3.27 per cent in June 2020. The 91-day Treasury bill rate decreased from 6.03 per cent in December 2019 to 5.29 per cent in December 2020. Commercial banks' liquidity ratio was at 56.5 per cent as at the end of December 2020 up from 52.6 per cent as at the end of December 2019. This was significantly higher than the statutory requirement of 20.0 per cent. The increased liquidity ratio was attributed to growth in liquid assets compared to the growth of short-term deposit liabilities. On the other hand, advances to deposit ratio declined from 79.4 per cent as at the end of December 2019 to 75.8 per cent as at the end of December 2020. REQUIRED; You have recently been appointed as chief economic advisor at the International Monetary fund. Using Economic models, functions and appropriate graphs, advise the Board of Management on the above subject matter.