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CBK's CBR shocker @ 16.5% - Playing Serious Hard Ball?!
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mwanahisa
#1 Posted : Tuesday, November 01, 2011 5:12:31 PM
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Joined: 6/2/2008
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News just in.

The CBK's Monetary Policy Committee has jacked up the CBR by an astronomical 550 basis points. This is much higher than the 250 basis points anticipated by analysts. CBK has become really aggressive - or was it pushed to do so by the IMF?

What do you guys think wil be the impact?
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kyt
#2 Posted : Tuesday, November 01, 2011 5:13:48 PM
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thats a shocker! nimesare
LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Iborian
#3 Posted : Tuesday, November 01, 2011 5:19:05 PM
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Our banks will swiftly follow suit with another round of base rate increases. I expect a credit squeeze to ensue and NPLs to skyrocket.
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Mainat
#4 Posted : Tuesday, November 01, 2011 5:22:07 PM
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Average is now 19%. Add another 2% on top of that.
Haya, mambo baado. Machozi time
Sehemu ndio nyumba
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'user'
#5 Posted : Tuesday, November 01, 2011 5:23:35 PM
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sacco option inevitable.ama turudi ocha tuanze barter trade.seriuosly what is the intention of raising cbk rate this much this time?
to make us cry more? I find it sadist
2012 is here.Kenya is Ours.Be Part of The Peace Keeping Mission To Protect Our Motherland.Say No To Violence and Tribal Hatred .If you can read this,wewe ni mtu amesoma, usifikirie kama mtu hajaenda shule .Ni Hayo Tu
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mwanahisa
#6 Posted : Tuesday, November 01, 2011 5:29:29 PM
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Meanwhile, Uganda also raised its benchmark rate by 300 basis points to 23%. Talk of a concerted effort by the EAC Central Banks to try and stem the unrelenting plunge of their currencies and unprecedented inflation rates.

Maybe if they had done this earlier, a lot of agony could have been avoided.

See:

http://www.bloomberg.com...b-runaway-inflation.html
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Cde Monomotapa
#7 Posted : Tuesday, November 01, 2011 5:38:49 PM
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If the banks don't sell off their USDs coz of this, I don't know what else will encourage them smile
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Cde Monomotapa
#8 Posted : Tuesday, November 01, 2011 5:41:49 PM
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Anyhu...a lot of Wazuans and spectators bayed for blood..sasa imeletwa na tanker Laughing out loudly Laughing out loudly #be careful what U wish for smile
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hisah
#9 Posted : Tuesday, November 01, 2011 5:42:21 PM
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Definitely TBills looking greener soon just like tea & coffee stocks...

Loan defaults! Pole sana to those affected...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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mzeemmoja
#10 Posted : Tuesday, November 01, 2011 6:00:12 PM
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Yeah and the CRR is up to 5.75% from 4.75%. Talk of Kes sqeeze from the economy. More capital flight from equity to MM. USD I hear traded at 96.8 today....
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Sufficiently Philanga....thropic
#11 Posted : Tuesday, November 01, 2011 6:18:59 PM
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Funny, all bank stocks headed north today! Interesting, if you ask me!
@SufficientlyP
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hisah
#12 Posted : Tuesday, November 01, 2011 6:41:49 PM
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mzeemmoja wrote:
Yeah and the CRR is up to 5.75% from 4.75%. Talk of Kes sqeeze from the economy. More capital flight from equity to MM. USD I hear traded at 96.8 today....


A low of 97.75 was hit today. USDKES is heading to 95.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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hisah
#13 Posted : Tuesday, November 01, 2011 6:46:06 PM
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Sufficiently Philanga....thropic wrote:
Funny, all bank stocks headed north today! Interesting, if you ask me!

Yes, very interesting Liar
The sky is the limit only that it has an invisible glass ceiling. That crash into the ceiling is going to hurt...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Mainat
#14 Posted : Tuesday, November 01, 2011 6:52:19 PM
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Sufficiently Philanga....thropic wrote:
Funny, all bank stocks headed north today! Interesting, if you ask me!

I have a wager with somebody that a Kenyan listed bank will require a rights issue by march
Sehemu ndio nyumba
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Cde Monomotapa
#15 Posted : Tuesday, November 01, 2011 6:55:29 PM
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Talk about aggressively re-setting our growth machine. Kudos Prof. smile
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hisah
#16 Posted : Tuesday, November 01, 2011 7:06:04 PM
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Cde Monomotapa wrote:
Talk about aggressively re-setting our growth machine. Kudos Prof. smile


A trailer or is it a rigs handbrake pull at high gears...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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kizee1
#17 Posted : Tuesday, November 01, 2011 7:21:45 PM
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Cde Monomotapa wrote:
Talk about aggressively re-setting our growth machine. Kudos Prof. smile

explain
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holycow
#18 Posted : Tuesday, November 01, 2011 7:30:20 PM
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Cde Monomotapa wrote:
Anyhu...a lot of Wazuans and spectators bayed for blood..sasa imeletwa na tanker Laughing out loudly Laughing out loudly #be careful what U wish for smile

Laughing out loudly Laughing out loudly Laughing out loudly smile
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mukiha
#19 Posted : Tuesday, November 01, 2011 7:45:42 PM
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Theoretically, the interest rate should be equal to the inflation rate.... This isn't rocket science.

It is a sure way of arresting runaway inflation....
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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GGK
#20 Posted : Tuesday, November 01, 2011 8:03:51 PM
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mukiha wrote:
Theoretically, the interest rate should be equal to the inflation rate.... This isn't rocket science.

It is a sure way of arresting runaway inflation....


Am no economist.
But I guess anyone lending below inflation would have no motivation to lend.

This is what we wanted the Professors in Treasury and CBK to do for a long time.

Those relying on credit to fund growth will have to rethink their strategies. I guess we will have more rights issue from all sorts of players.
"..I am because we are. "― Ubuntu, Umtu,
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