hisah wrote:alutacontinua wrote:There is something seriously wrong with the fundamentals in the country.....not seeing how one could justify high interest rates (15% plus) while inflation is at 5.8%. Ghana's inflation is at about 17% thus their interest rates are at about 25%.
Could anyone expound on the reasons for the deviations from fundamentals?
I also don't understand this madness! This is now chaotic. This will crash the economy if sustained to the year end as recession pops up its ugly head.. Job losses, labour strikes, failed businesses, tax deficits, political stress etc. What's the point? Where is Kibaki? At 5.8% inflation technically they are saying we have been in a period of disinflation for the last two months. I think not.
Inflation from the demand side is an impossibility given the economic conditions but the supply dynamics paint a different picture.
Pass through inflation from the weakened KES and electricity tariff hike should have registered a nudge already. Low oil prices have barely registered a significant decline in pump prices. Those figures are definitely doctored.
The main purpose of the stock market is to make fools of as many people as possible.