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CBK MPC Meet!!!
Rank: Elder Joined: 7/26/2007 Posts: 6,514
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CBK will do nothing today. They are looking for ghosts to blame. Business opportunities are like buses,there's always another one coming
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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wukan wrote:maka wrote:First meeting this year to be held today...Think they will hold the rate. Talk about been caught between hard rock and deep blue sea. Will they act to save banking sector or sacrifice liquidity? I reckon screw the banks. Will see Equity n KCB in the teens soonest True. The choices available are tough. Hike the rate to save KES and kill the markets and the economy or cut the rate and clobber the KES. Which is which?
They are likely to sit on their hands and hope for the best. No change. Just prayers and hope for the best! $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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hisah wrote:wukan wrote:maka wrote:First meeting this year to be held today...Think they will hold the rate. Talk about been caught between hard rock and deep blue sea. Will they act to save banking sector or sacrifice liquidity? I reckon screw the banks. Will see Equity n KCB in the teens soonest True. The choices available are tough. Hike the rate to save KES and kill the markets and the economy or cut the rate and clobber the KES. Which is which?
They are likely to sit on their hands and hope for the best. No change. Just prayers and hope for the best! Catch 22 indeed. But if push came to shove, a hike is more palatable than a rate cut. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: New-farer Joined: 5/7/2014 Posts: 40
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lochaz-index wrote:hisah wrote:wukan wrote:maka wrote:First meeting this year to be held today...Think they will hold the rate. Talk about been caught between hard rock and deep blue sea. Will they act to save banking sector or sacrifice liquidity? I reckon screw the banks. Will see Equity n KCB in the teens soonest True. The choices available are tough. Hike the rate to save KES and kill the markets and the economy or cut the rate and clobber the KES. Which is which?
They are likely to sit on their hands and hope for the best. No change. Just prayers and hope for the best! Catch 22 indeed. But if push came to shove, a hike is more palatable than a rate cut. My guess is also for rates to remain unchanged. But I'm curious to see movement of Dec 2016 Private Sector Credit Growth. If it dips below 5%, how do you cut rates and risk an economic slow down? If it rebounds to ~10%, then you have slightly more leeway to increase rates...
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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Sasa we stop speculation and wait for 4pm on the news Wealth is built through a relatively simple equation Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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lochaz-index wrote:hisah wrote:wukan wrote:maka wrote:First meeting this year to be held today...Think they will hold the rate. Talk about been caught between hard rock and deep blue sea. Will they act to save banking sector or sacrifice liquidity? I reckon screw the banks. Will see Equity n KCB in the teens soonest True. The choices available are tough. Hike the rate to save KES and kill the markets and the economy or cut the rate and clobber the KES. Which is which?
They are likely to sit on their hands and hope for the best. No change. Just prayers and hope for the best! Catch 22 indeed. But if push came to shove, a hike is more palatable than a rate cut. Extreme testing is the key here, lower the rates and be sure next time what to expect, by the way who is complaining. When the banks were busy wringing the last remaining drop of blood off the host, the host kicked relentlessly, the economy was at banks mercies. Now the rates have been capped and CBR is lower, the banks are alive and kicking. Profits are strolling in. Better approaches to lending are being suggested, Meriting creditors are getting the credit. Nonmeriting are busy cleaning up their mess and getting cleansed off the vice. What else does anybody need anyday if not peace of mind. Leave the chickening out of the game cause the sky has always been falling. My ten cents. GoK could as well bring in another eurobond or introduce NIR to waken the smelling money in the banks. ,Behold, a sower went forth to sow;....
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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CBR Rate held at 10.0%; away with the KBBR framework Says data inconclusive for assessing impact of rate caps but Q3 was robust and other stories... https://www.centralbank....anuary%2030,%202017.pdf
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Rank: Veteran Joined: 7/3/2007 Posts: 1,634
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"The banking sector recorded notable growth in 2016, with an expanded asset base, increased capitalization, and improved profitability. The average commercial banks’ liquidity ratio and capital adequacy ratios stood at 41.4 percent and 18.7 percent, respectively, in December 2016. Private sector credit growth stabilized at 4.3 percent in December, 2016 driven by lending to trade, real estate, private households and consumer durables."How do you square the above statement with the constant refrain, mostly from the Wazua Banksters brigade, that the sky is about to fall on our noggins? What are they smoking? "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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Wakanyugi wrote:"The banking sector recorded notable growth in 2016, with an expanded asset base, increased capitalization, and improved profitability. The average commercial banks’ liquidity ratio and capital adequacy ratios stood at 41.4 percent and 18.7 percent, respectively, in December 2016. Private sector credit growth stabilized at 4.3 percent in December, 2016 driven by lending to trade, real estate, private households and consumer durables."How do you square the above statement with the constant refrain, mostly from the Wazua Banksters brigade, that the sky is about to fall on our noggins? What are they smoking? These Wazuans aka banks' prophets of doom I don't understand which planet they originate from.... They consistently spread rumours of a freefall in banking sector something unattainable in the current Kenyan economy. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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Spikes wrote:Wakanyugi wrote:"The banking sector recorded notable growth in 2016, with an expanded asset base, increased capitalization, and improved profitability. The average commercial banks’ liquidity ratio and capital adequacy ratios stood at 41.4 percent and 18.7 percent, respectively, in December 2016. Private sector credit growth stabilized at 4.3 percent in December, 2016 driven by lending to trade, real estate, private households and consumer durables."How do you square the above statement with the constant refrain, mostly from the Wazua Banksters brigade, that the sky is about to fall on our noggins? What are they smoking? These Wazuans aka banks' prophets of doom I don't understand which planet they originate from.... They consistently spread rumours of a freefall in banking sector something unattainable in the current Kenyan economy. They are feeling some heat somewhere, and its about to get even nastier. You can not have it all your way, eti all sweet things are mine. Hata kachumbari ni chakula bora kwa ujenzi wa economy yawa ,Behold, a sower went forth to sow;....
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Living in la la land. Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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Kenya's economy is dead. Our status as a major power in the african continent is on the decline. Courtesy of the two senior people CHOICES HAVE CONSEQUENCES Wealth is built through a relatively simple equation Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 10/29/2008 Posts: 1,566
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If you are a farmer, who lives of farming, then on the onset of this season - a couple of months ago you failed to plant, you don't feel the squeeze in a few weeks time. The consequences of your decision will catch up with you after some time - in a year's time or so. Isuni yilu yi maa me muyo - ni Mbisuu
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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Ericsson wrote:Kenya's economy is dead. Our status as a major power in the african continent is on the decline. Courtesy of the two senior people CHOICES HAVE CONSEQUENCES Demand ya mirungi on the increase. Na wateja wanaonekana moja kwa moja. @erics, are you addicted? ,Behold, a sower went forth to sow;....
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Rank: Member Joined: 5/21/2014 Posts: 184
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What does this imply, if anything, in as far as rate cap is concerned? "In view of the adoption of the new law capping interest rates the CBK decided to suspend the KBRR framework"There are too many opportunities all around. Open your eyes and maybe you'll spot one
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Rank: Veteran Joined: 11/13/2015 Posts: 1,589
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CBK governor says "all investors need to take a long term bet on kenyan economy".....yaaaaaaawn!!!
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Rank: New-farer Joined: 5/7/2014 Posts: 40
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actuarywahisa wrote:What does this imply, if anything, in as far as rate cap is concerned? "In view of the adoption of the new law capping interest rates the CBK decided to suspend the KBRR framework" KBRR was to act as a signal of rates banks should charge customers. Rates were to be a spread to KBRR. But since Cap is now in place and mandates banks to stay within the CBR + 400bps range, KBRR is redundant.
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Rank: Veteran Joined: 7/3/2007 Posts: 1,634
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Ngalaka wrote:If you are a farmer, who lives of farming, then on the onset of this season - a couple of months ago you failed to plant, you don't feel the squeeze in a few weeks time. The consequences of your decision will catch up with you after some time - in a year's time or so. Right In the meantime you are supposed to run around like a headless chicken, spreading panic to all and sundry. Isokei "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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When the Governor has to say he is under no political pressure, you should be smart enough to get the message. Business opportunities are like buses,there's always another one coming
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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Wakanyugi wrote:Ngalaka wrote:If you are a farmer, who lives of farming, then on the onset of this season - a couple of months ago you failed to plant, you don't feel the squeeze in a few weeks time. The consequences of your decision will catch up with you after some time - in a year's time or so. Right In the meantime you are supposed to run around like a headless chicken, spreading panic to all and sundry. Isokei @ Ngalaka made the sentiments as a concern wazuans for the wazua ,Behold, a sower went forth to sow;....
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