Rank: Elder Joined: 9/23/2010 Posts: 2,220 Location: Sundowner,Amboseli
|
KulaRaha wrote:I think to be fair the issue is being clouded. Inflation may be imported or supply side, I don't argue, but I think the issue on hand is the CBK handling of matters.
A lame duck approach early on led to rampant speculation, mostly by banks CBK cannot discipline. A total turnaround then occurred, and draconian measures came next, which caused the liquidity crunch.
Now, this has been replaced with opacity, as in no one knows how the window rate is measured...followed by a bit more confusion, like selling tiny amounts of forex in the market yesterday.
Too much confusion reigns. What would be desirable is stability, a serious, mature, non-academic approach to matters.
Remember, you can defend either your currency, or your interest rates, but not both! Make a choice, and stick to it. Well @Kularaha, CBK can only jaggle with Currency in the short run, interest rates will remain high due to the Governmemnt's high appetite for money! This too will slow any gains to be made in Equities! @SufficientlyP
|