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CBK's CBR shocker @ 16.5% - Playing Serious Hard Ball?!
Rank: Elder Joined: 6/2/2008 Posts: 1,438
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If nothing else, the shilling is responding to the bitter medicine. http://af.reuters.com/ar...ws/idAFL5E7M205K20111102
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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accelriskconsult wrote:I just received this interesting email,
The Kenyan Shilling has been observed by Reuters and other respectable publications as being the worst performing currency having depreciated by 25% in a span of about 6 months. This was an interesting session where in summary, IEA and other presenters observed the Kenyan Shilling had depreciated primarily due to a widening current and capital account deficit primarily caused by lack of co-ordination of fiscal and monetary policies. IEA and other facilitators observed that this was an opportunity for Kenya to be initiated (one observer said circumcised) into a new realm of refined policy making.
The email contains attachments from deliberations during the meeting. The attachments can be shared on request
T send it to murksgabe@gmail.com'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Rank: Elder Joined: 9/23/2010 Posts: 2,225 Location: Sundowner,Amboseli
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hisah wrote:Sufficiently Philanga....thropic wrote:Funny, all bank stocks headed north today! Interesting, if you ask me! Yes, very interesting 
The sky is the limit only that it has an invisible glass ceiling. That crash into the ceiling is going to hurt... Smart money giving way to dumb money in bank stocks! @SufficientlyP
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Rank: Member Joined: 9/12/2006 Posts: 42
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accelriskconsult wrote:I just received this interesting email,
The Kenyan Shilling has been observed by Reuters and other respectable publications as being the worst performing currency having depreciated by 25% in a span of about 6 months. This was an interesting session where in summary, IEA and other presenters observed the Kenyan Shilling had depreciated primarily due to a widening current and capital account deficit primarily caused by lack of co-ordination of fiscal and monetary policies. IEA and other facilitators observed that this was an opportunity for Kenya to be initiated (one observer said circumcised) into a new realm of refined policy making.
The email contains attachments from deliberations during the meeting. The attachments can be shared on request
T send please alaneet8@gmail.com
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Bottom line this decision combined with the good rains & ongoing harvest is a win for main-street inflation wise. Personally, as an investor I am looking beyond FY2011 for meaningful gains. In the interim, I am pleased that basics are being addressed. Stock dips and cash to buy is also welcome  Merry Xmas.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Btw, IEA is yet another useless Kenyan economic commentator I have come across  Merry Xmas.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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GO GO GO Kenya Shilling...the cure is working...CBK/IMF should hike again until we go back to 75 to the USD!!! Once inflation gets stuck at 4-5%...then we can talk of vision 2030!!!
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Rank: Member Joined: 4/19/2007 Posts: 68
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Hi,
The governor was very categorical about the reason for the increase in the CBR, we are using debt to finance consumption.
Get ready for a repeat of 1984 and 1992 when interest rates rose above 25%. The banks are making a blanket adjustment to all loans including mortgages.
This will result in a reduced standard of living for the middle class and an increase in defaults especially for those who have variable rate mortgages, roughly 80% of all mortgage owners.
Another group that is likely to suffer are those who have recently taken on large car loans.
The 2 groups have one major problem in that their incomes are fixed and even if they stand to get an increment in December it is unlikely to cover the increased repayments and the inflation rate.
All this are the dangers of having a president who is not seeking re-election and a parliament that is not expecting to return in the next term.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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stocksguru wrote:Hi,
The governor was very categorical about the reason for the increase in the CBR, we are using debt to finance consumption.
Get ready for a repeat of 1984 and 1992 when interest rates rose above 25%. The banks are making a blanket adjustment to all loans including mortgages.
This will result in a reduced standard of living for the middle class and an increase in defaults especially for those who have variable rate mortgages, roughly 80% of all mortgage owners.
Another group that is likely to suffer are those who have recently taken on large car loans.
The 2 groups have one major problem in that their incomes are fixed and even if they stand to get an increment in December it is unlikely to cover the increased repayments and the inflation rate.
All this are the dangers of having a president who is not seeking re-election and a parliament that is not expecting to return in the next term. That is exactly the point! Mandatory lifestyle adjustment c/o the GoK. Priorities 1st, discretionaries last Merry Xmas.
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Rank: New-farer Joined: 10/13/2011 Posts: 67 Location: Kenya
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stocksguru wrote:Hi,
The governor was very categorical about the reason for the increase in the CBR, we are using debt to finance consumption.
Get ready for a repeat of 1984 and 1992 when interest rates rose above 25%. The banks are making a blanket adjustment to all loans including mortgages.
This will result in a reduced standard of living for the middle class and an increase in defaults especially for those who have variable rate mortgages, roughly 80% of all mortgage owners.
Another group that is likely to suffer are those who have recently taken on large car loans.
The 2 groups have one major problem in that their incomes are fixed and even if they stand to get an increment in December it is unlikely to cover the increased repayments and the inflation rate.
All this are the dangers of having a president who is not seeking re-election and a parliament that is not expecting to return in the next term. @stocksguru ---- And a Finance Minister who is fighting survival in the hague and busy campaining for Presidency in 2012.
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CBK's CBR shocker @ 16.5% - Playing Serious Hard Ball?!
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