Wazua
»
Investor
»
Economy
»
CBK MPC Meet!!!
Rank: Member Joined: 7/8/2013 Posts: 126
|
don't be surprised if those dinosaurs maintain it at 8.5% or raise it. status quo itaendelea
|
|
|
Rank: Chief Joined: 8/4/2010 Posts: 8,977
|
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
|
|
|
Rank: Member Joined: 8/16/2012 Posts: 660
|
Live and learn; and don’t forget, nothing ventured, nothing gained.
|
|
|
Rank: Elder Joined: 10/11/2006 Posts: 2,304
|
How does the 9% come about? 91 Day T/Bill is at 11.4% Conventional thinkers waste time building shelters when they are unnecessary and then have no shelters when they need them the most. Socionomists do the opposite.
|
|
|
Rank: User Joined: 1/20/2014 Posts: 3,528
|
mnandii wrote:How does the 9% come about? 91 Day T/Bill is at 11.4% Exactly and if you add the two who are likely to be in the 20's or it is average of the two rates? Probably! Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
|
|
|
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
Othelo wrote:mnandii wrote:How does the 9% come about? 91 Day T/Bill is at 11.4% Exactly and if you add the two who are likely to be in the 20's or it is average of the two rates? Probably! This 91 Day T/Bill rate wont stay up. And the lending rates too. CBK has spoken  ---> The KBRR is computed as an average of the CBR and and the weighted 2-month moving average of 91 Day T/Bill rates https://centralbank.go.ke/images...elease_-_July_8_2014.pdf
|
|
|
Rank: User Joined: 1/20/2014 Posts: 3,528
|
thanks @mweke.. Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
|
|
|
Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
|
mwekez@ji wrote:This 91 Day T/Bill rate wont stay up. And the lending rates too. CBK has spoken ---> The KBRR is computed as an average of the CBR and and the weighted 2-month moving average of 91 Day T/Bill rates https...elease_-_July_8_2014.pdf @Mweke, today your link is so made in c RINK ORINGINALPesa Nane plans to be shilingi when he grows up.
|
|
|
Rank: Elder Joined: 2/16/2007 Posts: 2,114
|
Is Prof Ryan still at the treasury?
|
|
|
Rank: Elder Joined: 10/11/2006 Posts: 2,304
|
Othelo wrote:thanks @mweke.. Conventional thinkers waste time building shelters when they are unnecessary and then have no shelters when they need them the most. Socionomists do the opposite.
|
|
|
Rank: Elder Joined: 7/26/2007 Posts: 6,514
|
Reference rate = waste of time! How can you have a rate that manages loans, yet doesn't managed deposits? Another exercise in folly. Business opportunities are like buses,there's always another one coming
|
|
|
Rank: Veteran Joined: 11/21/2006 Posts: 1,590
|
Disagree. This is a perfect opportunity for bankers to eat. You can price funding at zero cost if you want, correct? quote=KulaRaha]Reference rate = waste of time! How can you have a rate that manages loans, yet doesn't managed deposits? Another exercise in folly.[/quote] Sehemu ndio nyumba
|
|
|
Rank: Veteran Joined: 11/11/2006 Posts: 971 Location: Home
|
Ok, i'm not into banking. So does it mean Bank profits will drop, stagnate or rise?
|
|
|
Rank: Member Joined: 8/16/2012 Posts: 660
|
mwekez@ji wrote:Othelo wrote:mnandii wrote:How does the 9% come about? 91 Day T/Bill is at 11.4% Exactly and if you add the two who are likely to be in the 20's or it is average of the two rates? Probably! This 91 Day T/Bill rate wont stay up. And the lending rates too. CBK has spoken ---> The KBRR is computed as an average of the CBR and and the weighted 2-month moving average of 91 Day T/Bill rates https://centralbank.go.ke/images...elease_-_July_8_2014.pdf Live and learn; and don’t forget, nothing ventured, nothing gained.
|
|
|
Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
|
holycow wrote:Ok, i'm not into banking. So does it mean Bank profits will drop, stagnate or rise? Pesa Nane plans to be shilingi when he grows up.
|
|
|
Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
|
Do we have a banker in the house? Can someone make this Kenya Bank Reference Rate (KBRR) more idiot proof. Is it the rate my bank should base my loan on? At what point do I know that my bank has added too much on top and at what point should I sue my bank for overcharging me? What's the new expected base lending rate for banks as per this?
BBI will solve it :)
|
|
|
Rank: Member Joined: 8/17/2011 Posts: 207 Location: humu humu
|
Exciting news indeed!
How long do banks have to re-price existing loans? or to price new loans? Hoping that the margins banks put above the CBRR don't exceed 4%.
Business animal spirits will roar!! Its a win-win situation at play here as the uptake of loans go up, loan books hopefully will swell and businesses shall thrive in a scale never seen before.
|
|
|
Rank: Veteran Joined: 11/21/2006 Posts: 1,590
|
kaifastus wrote:Exciting news indeed!
How long do banks have to re-price existing loans? or to price new loans? Hoping that the margins banks put above the CBRR don't exceed 4%.
Business animal spirits will roar!! Its a win-win situation at play here as the uptake of loans go up, loan books hopefully will swell and businesses shall thrive in a scale never seen before. Its not retrospective. As far as I can tell, if GoK borrows at 2% higher than this, I as a banker can charge large companies 2% more than GoK (i.e. 13%), I can then charge kamau 5% higher than this. End game is that status quo remains Sehemu ndio nyumba
|
|
|
Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
|
2012 wrote:Do we have a banker in the house? Can someone make this Kenya Bank Reference Rate (KBRR) more idiot proof. Is it the rate my bank should base my loan on? At what point do I know that my bank has added too much on top and at what point should I sue my bank for overcharging me? What's the new expected base lending rate for banks as per this? I'm also waiting for the answers.
|
|
|
Rank: Member Joined: 8/17/2011 Posts: 207 Location: humu humu
|
Mainat wrote:kaifastus wrote:Exciting news indeed!
How long do banks have to re-price existing loans? or to price new loans? Hoping that the margins banks put above the CBRR don't exceed 4%.
Business animal spirits will roar!! Its a win-win situation at play here as the uptake of loans go up, loan books hopefully will swell and businesses shall thrive in a scale never seen before. Its not retrospective. As far as I can tell, if GoK borrows at 2% higher than this, I as a banker can charge large companies 2% more than GoK (i.e. 13%), I can then charge kamau 5% higher than this. End game is that status quo remains But the CBRR has already been set at 9%! Unless macroeconomic Indicators change "drastically",this is the CBRR untill june next year,Maina. Banks will now make lending decisions with CBRR in focus. Banks cant fight the tide this time..the wind blowing against the interest rates is too much!! Noise everywhere, not different from the 2002 clamor for a new constitution. it would look pretty shameless for them to maintain status quo the way the KBA chairman is alluding to..
|
|
|
Wazua
»
Investor
»
Economy
»
CBK MPC Meet!!!
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|