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CBK's monetary policy
brian mackenzie
#1 Posted : Wednesday, March 16, 2011 11:13:34 AM
Rank: New-farer


Joined: 1/17/2011
Posts: 26
Location: nairobi kenya
The CBK has issued another 30 year bond. Does this make economic sense reducing liquidity during times of hardship as opposed to steadily increasing money supply and encouraging government expenditure or they are worried about too much money chasing few goods in the economy right now.

Imagine a litre of kerosene in Lodwar and Mandera at 95/= and petrol at 113. How will people in these marginalized areas survive with these costs given the fact that they are already suffering from hunger.
Cde Monomotapa
#2 Posted : Wednesday, March 16, 2011 12:12:13 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
Next MPC meeting on 23rd March. Let's wait n listen to what the good Governor has to say. Bet CBR will be maintained as crude prices have eased but most importantly the rains are finally here!!
brian mackenzie
#3 Posted : Wednesday, March 16, 2011 2:28:34 PM
Rank: New-farer


Joined: 1/17/2011
Posts: 26
Location: nairobi kenya
note that power prices will however go up even if rains have began. I also hope and expect the MPR to remain at 5.75% but dont be surprised if it doesnt
kizee1
#4 Posted : Wednesday, March 16, 2011 5:10:37 PM
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Joined: 9/29/2010
Posts: 679
Location: nairobi
they should start tightening mop up the taka taka kes floating in the economy
hisah
#5 Posted : Thursday, March 17, 2011 10:49:20 PM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
I expect the MPC meeting to be a none event except for banks having a forex field day! If they didn't act in October 2010, it's pointless now... At least they should revise down GDP growth estimates & stop lying all is well...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
Cde Monomotapa
#6 Posted : Friday, March 18, 2011 7:18:43 AM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
Please note that when I refer to rain i'm mostly reffering to its +ve effects on food production & availabilty. Food is more important to this country than Kenyans complaining that its now expensive to drive their leveraged Sandaks to town everyday. As for electricity this is more of a demand & supply issue. We just don't have enough! Helps me sleep soundly at night with Kengen by my side esp. with the new 120MW KIPEVU III! Tutajiju (consumers) but we'll get paid as well!(investors)
Muthawamunene
#7 Posted : Saturday, April 02, 2011 12:34:35 PM
Rank: Member


Joined: 1/3/2011
Posts: 264
Location: Nairobi
kizee1 wrote:
they should start tightening mop up the taka taka kes floating in the economy

Makes hell of a lot sence.
until the leaks in the pipes (bad governance and hungry corrupt kenyans), i woud advise suppresing money supply. if we have to spend, lets spend it on sure capital projects, like the road and agriculture not billions in administration changes (counties) and cdf projects where mtu wa mkono analipwa 1200 ksh per day!! to build a 3 roomed structure at 2m ksh wtf!!

worst thing G.k can do is approve the 10-20% pay rise. jus like the debt crisis in europe and the morgage burst of '08, lets learn a lesson. no use chasing after economic growth (short-term growth) at the expense of the wider future. Hard times bring inovation, just ask singapore and spain
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