[quote=hisah]@Kizee1 - MPC has nowhere to run nor hide. If they hike by 100bps the GDP estimate model will crumble, if they don't do anything, they're still cooked! And what will that do to gubberment spending/funding with Hague circus, constitution reform funds and definitely food imports plus oil and an upcoming election... I leave that to your imagination.
And those gubberment bonds held by the not so smart banks will become paper or is it losses in their books. What happens to the banks lending rate and their lending spree... We'll see this tape by Q3.
Inflation spikes to 12.05% still breaches my estimate of 11%, but in line with my double digit expectation. I'm doing poorly in my math. No wonder my prof failed me for being too poor in econs...
On a brighter note, maybe my poor econs would be appreciated by MPC or gubberment since their poor track is brilliance? I'm thinking of converting my little Kshs savings into oranges or potatoes. They're more valuable anyway...
http://af.reuters.com/ar...E73S0MR20110429?sp=true[/quote]
the cbks primary object is price stability...nowhere is a growth object mentioned..the mpc in advising the cbk deviated from this object and thats y we are where we are