PSC report is just... No comment.

'International criminals in the name of speculators or hoarders' are also blamed for the 2011 spectacular KES nosedive.

That report is such a taxpayers waste of time & funds. So do they expect the banks to payback the arbitrage windfall as well as the 'evil' speculators (KE & other banks etc). What a circus. Anyway how do we expect politicians to fix issues if they got no clue about them. Which reminds of how Greece is now finally 'saved' as well as euroland...

http://www.businessdaily.../-/vn10q2z/-/index.html


@Kizee - Still waiting for CBK to pull the CBR reduction trigger before jumping on USDKES. Yet again another PSC meeting on the same in 2013... Maybe this time they'll extend the investigations to intl banks & IMF.

[quote=hisah]Finally the bankers respond to PSC's circus (suckers) report.

I really hope CBR is lowered today by 200bps now that inflation is 'deflating'. As usual USDKES re-rate will be my trade. The canadian dollar cross CADKES may also behave like swiss franc - CHFKES last year. I patiently wait for the tea leaves to cook.

http://www.nation.co.ke/.../-/231117z/-/index.html[/quote]

So MPC refuse to play the CBR reduction ball. That should keep on USD vs KES down for the time being. Now we move to fuel prices for Mar and Apr. All the global oil contracts for Mar and Apr which were on high price rallies - Apr being the worst. So fuel prices will most likely be revised upwards in Mar and Apr and that should make inflation remain above 16.7%.

I wonder how the Q1 and H1 bank results will look like if CBR is maintained at this lofty heights up to June 2012. Should be interesting reading those tea leaves then...

Tunaomba CBK tafadhali ichapishe msimu wa mvua haraka upesi. Where the heck are those rainmakers to print the rain storms... I hope oil prices will not have exploded past $150/brl with food importation also on the import bill... The 2012 KE budget will be a tough balancing act.

http://www.nation.co.ke/...8/-/1shwmz/-/index.html

[quote=hisah]Clearly it is time to start cooking up inflation downwards by removing milk from food items...

http://www.nation.co.ke/...0/-/338qeh/-/index.html[/quote]

what do you suggest of maize and veges?

Going by oil price moves ERC will definitely hike fuel prices for the months of March & April. So will ERC kick me for stating the obvious...
Should KES start a slid with oil prices at the current levels, inflation will definitely print above 20%.
There's so much CBK can do with their tools and hiking CBR at such a scenario would throw the econ in ICU. Bank stocks on a ticker...