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CBK MPC Meet!!!
KulaRaha
#501 Posted : Monday, January 30, 2017 10:58:16 AM
Rank: Elder


Joined: 7/26/2007
Posts: 6,514
CBK will do nothing today. They are looking for ghosts to blame.
Business opportunities are like buses,there's always another one coming
hisah
#502 Posted : Monday, January 30, 2017 11:12:36 AM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
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! PrayPray
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
lochaz-index
#503 Posted : Monday, January 30, 2017 12:22:03 PM
Rank: Veteran


Joined: 9/18/2014
Posts: 1,127
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! PrayPray

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.
KenyanEconomist
#504 Posted : Monday, January 30, 2017 2:19:30 PM
Rank: New-farer


Joined: 5/7/2014
Posts: 40
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! PrayPray

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...
Ericsson
#505 Posted : Monday, January 30, 2017 2:23:46 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,678
Location: NAIROBI
Sasa we stop speculation and wait for 4pm on the news
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
muandiwambeu
#506 Posted : Monday, January 30, 2017 3:26:16 PM
Rank: Veteran


Joined: 8/28/2015
Posts: 1,247
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! PrayPray

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;....
muganda
#507 Posted : Monday, January 30, 2017 5:58:41 PM
Rank: Elder


Joined: 9/15/2006
Posts: 3,905
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

Wakanyugi
#508 Posted : Monday, January 30, 2017 9:32:21 PM
Rank: Veteran


Joined: 7/3/2007
Posts: 1,634
muganda wrote:
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



"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)
Spikes
#509 Posted : Monday, January 30, 2017 9:52:29 PM
Rank: Elder


Joined: 9/20/2015
Posts: 2,811
Location: Mombasa
Wakanyugi wrote:
muganda wrote:
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



"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.”
muandiwambeu
#510 Posted : Tuesday, January 31, 2017 12:10:56 AM
Rank: Veteran


Joined: 8/28/2015
Posts: 1,247
Spikes wrote:
Wakanyugi wrote:
muganda wrote:
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



"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 yawaLaughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly
,Behold, a sower went forth to sow;....
KulaRaha
#511 Posted : Tuesday, January 31, 2017 8:16:25 AM
Rank: Elder


Joined: 7/26/2007
Posts: 6,514
muganda wrote:
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



Living in la la land.
Business opportunities are like buses,there's always another one coming
Ericsson
#512 Posted : Tuesday, January 31, 2017 9:12:39 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,678
Location: NAIROBI
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
Ngalaka
#513 Posted : Tuesday, January 31, 2017 9:54:47 AM
Rank: Veteran


Joined: 10/29/2008
Posts: 1,566
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
muandiwambeu
#514 Posted : Tuesday, January 31, 2017 9:57:00 AM
Rank: Veteran


Joined: 8/28/2015
Posts: 1,247
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?smile smile smile smile
,Behold, a sower went forth to sow;....
actuarywahisa
#515 Posted : Tuesday, January 31, 2017 11:41:22 AM
Rank: Member


Joined: 5/21/2014
Posts: 184
muganda wrote:
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



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
wukan
#516 Posted : Tuesday, January 31, 2017 12:44:08 PM
Rank: Veteran


Joined: 11/13/2015
Posts: 1,589
CBK governor says "all investors need to take a long term bet on kenyan economy".....yaaaaaaawn!!!
KenyanEconomist
#517 Posted : Tuesday, January 31, 2017 1:36:50 PM
Rank: New-farer


Joined: 5/7/2014
Posts: 40
actuarywahisa wrote:
muganda wrote:
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



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.
Wakanyugi
#518 Posted : Tuesday, January 31, 2017 2:25:35 PM
Rank: Veteran


Joined: 7/3/2007
Posts: 1,634
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)
KulaRaha
#519 Posted : Tuesday, January 31, 2017 2:35:03 PM
Rank: Elder


Joined: 7/26/2007
Posts: 6,514
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
muandiwambeu
#520 Posted : Tuesday, January 31, 2017 3:06:01 PM
Rank: Veteran


Joined: 8/28/2015
Posts: 1,247
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




Sad Sad Sad Sad Laughing out loudly Laughing out loudly @ Ngalaka made the sentiments as a concern wazuans for the wazua
,Behold, a sower went forth to sow;....
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