Kwisa.

will we be alive that long? lol

CBR is actually at 6...i think mpc will do some drastic stuff maybe a 100 bpts hike...

CBK Governor and his team are failing this country.
This is not the first time Oil prices are that high. The crude oil price was one time circa $150 per bbl and inflation then was contained.

Look at Europe, Australia, Canada, and other countries. When the oil price go up they interpret that to mean the weakening of the dollar against their currencies. Their currencies appreciate as the oil prices go up. So their economies are NOT significantly affected by the rise of oil prices.

This was the same strategy that was being used by CBK in 2004-2007 (I guess Prof Ndungu was not there then) and we know at one time the USD was trading at Ksh 60. Now USD / Kshs rate is 85.

This change of strategy is ruining the economy and the country. There is nothing as dangerous to economic stability as Inflation. Ask Ben Benernke, or Jean-Claude Trichetthe ECB President. Their biggest concern is inflation. Someone needs to bring this animal (inflation) down... otherwise it will consume everything.

WE NEED CHANGE AT THE CENTRAL BANK. Either change of the strategy or Change the people.
Is anyone listening?

@Kizee1 - MPC has nowhere to run nor hide. If they hike by 100bps the GDP estimate model will crumble, if they don't do anything, they're still cooked! And what will that do to gubberment spending/funding with Hague circus, constitution reform funds and definitely food imports plus oil and an upcoming election... I leave that to your imagination.

And those gubberment bonds held by the not so smart banks will become paper or is it losses in their books. What happens to the banks lending rate and their lending spree... We'll see this tape by Q3.

Inflation spikes to 12.05% still breaches my estimate of 11%, but in line with my double digit expectation. I'm doing poorly in my math. No wonder my prof failed me for being too poor in econs...

On a brighter note, maybe my poor econs would be appreciated by MPC or gubberment since their poor track is brilliance? I'm thinking of converting my little Kshs savings into oranges or potatoes. They're more valuable anyway...

http://af.reuters.com/ar...DE73S0MR20110429?sp=true