wazua Wed, Apr 15, 2026
Welcome Guest Search | Active Topics | Log In

53 Pages<1234>»
CBK MPC Meet!!!
Options
Previous Topic · Next Topic
kizee1
#11 Posted : Thursday, December 01, 2011 11:41:09 AM
Rank: Member

Joined: 9/29/2010
Posts: 679
Location: nairobi
Sufficiently Philanga....thropic wrote:
Strictly speaking, the CBR should follow the inflation rate. So a 300 bps hike on paper sounds the like best rate hike regardless of what has caused the increase in inflation rate!
However, with inflation expected to cool in Q12012, this should be CBKs last rate hike (read pain to the public) and subsequent rates should come down!
I can do with 1 more rate hike for the sake of a better tomorrow, we all should!Of course the NSE will seriously bleed, and 2,700 we shall surely print!
BTW, @Kizee & Scubidu, where art thou!



i think the mpc shud be disbanded and cbks control over monetary policy shud be taken away, i beleive the market mechanism shud determine the optimal amount and price of money....sorry to divert from teh topic
Back to top
  |
Kausha
#12 Posted : Thursday, December 01, 2011 12:08:33 PM
Rank: Member

Joined: 2/8/2007
Posts: 808
Some one appraise my economics 101. The economy was reeling from the effects of PEV and global slow down in 2008. It didn't help inflation was running out of control. CBK responded by reorganizing the inflation basket and recalibrating inflation. It further together with government responded by loosening monetary policy and an expansionist fiscal policy. These 2 were implemented in 2010.

In 2011, suddenly we discover inflation has gone up again and the currency has become rubbish and raise rates to ridiculous levels. The basics I know of economics are that when you implement a policy you wait for the induced cycle to run its course before attempting something different. Why are we doing flip flops with this economy year on year? I am willing to bet CBK is very clueless on this matter and are murking around.
Back to top
  |
kizee1
#13 Posted : Thursday, December 01, 2011 12:11:48 PM
Rank: Member

Joined: 9/29/2010
Posts: 679
Location: nairobi
Kausha wrote:
Some one appraise my economics 101. The economy was reeling from the effects of PEV and global slow down in 2008. It didn't help inflation was running out of control. CBK responded by reorganizing the inflation basket and recalibrating inflation. It further together with government responded by loosening monetary policy and an expansionist fiscal policy. These 2 were implemented in 2010.

In 2011, suddenly we discover inflation has gone up again and the currency has become rubbish and raise rates to ridiculous levels. The basics I know of economics are that when you implement a policy you wait for the induced cycle to run its course before attempting something different. Why are we doing flip flops with this economy year on year? I am willing to bet CBK is very clueless on this matter and are murking around.



in which case wouldnt we have faired better if we didnt have a CB?
Back to top
  |
'user'
#14 Posted : Thursday, December 01, 2011 12:12:42 PM
Rank: Veteran

Joined: 12/3/2010
Posts: 1,141
Location: Londokwe
ndungu reminds me of syokimau bulldozers. destruction.these interest rates will destroy many businesses
2012 is here.Kenya is Ours.Be Part of The Peace Keeping Mission To Protect Our Motherland.Say No To Violence and Tribal Hatred .If you can read this,wewe ni mtu amesoma, usifikirie kama mtu hajaenda shule .Ni Hayo Tu
Back to top
  | | Edit by user: Thursday, December 01, 2011 12:18 PM | Reason: Not specified
hisah
#15 Posted : Thursday, December 01, 2011 12:46:36 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
Kausha wrote:
Some one appraise my economics 101. The economy was reeling from the effects of PEV and global slow down in 2008. It didn't help inflation was running out of control. CBK responded by reorganizing the inflation basket and recalibrating inflation. It further together with government responded by loosening monetary policy and an expansionist fiscal policy. These 2 were implemented in 2010.

In 2011, suddenly we discover inflation has gone up again and the currency has become rubbish and raise rates to ridiculous levels. The basics I know of economics are that when you implement a policy you wait for the induced cycle to run its course before attempting something different. Why are we doing flip flops with this economy year on year? I am willing to bet CBK is very clueless on this matter and are murking around.

The beeline...

2002 - econ contraction and elections -> 2003 - 2005 - econ reconstruction/money supply expansion -> 2007 -> Lotsa ponzi schemes & brokerage firm collapse -> 2008 -> PEV and GFC -> 2009 -> Post GFC stimulus and drought funds -> 2010 -> Inflation model manipulation and more stimulus -> 2011 -> inflation spikes, 1 trillion budget expansion, CBK rate hikes -> 2012 -> elections and econ contraction -> 2013 econ reconstruction.

By 2013 all will be well and already forgotten.

Wash, rinse and repeat... That's the econ cycle.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
Back to top
  | | Edit by user: Thursday, December 01, 2011 12:54 PM | Reason: Not specified
Mainat
#16 Posted : Thursday, December 01, 2011 1:05:19 PM
Rank: Veteran

Joined: 11/21/2006
Posts: 1,590
Anymore hikes will be massively counter-productive and continue to show how out of touch with reality MPC is. Economically, we lost our when Mwiraria had to ngo
Sehemu ndio nyumba
Back to top
  |
Insurgent
#17 Posted : Thursday, December 01, 2011 1:38:18 PM
Rank: User

Joined: 8/6/2010
Posts: 594
GenghisCapitalLtd wrote:
Feels like I am in a thriller movie (wanted to post this jana but Wazua was down ama was it my internet connection)


Now you are talking like Ruto. How long have you been in the NSE? If two years, kuwa mpole uone maneno. There are no movies in the stock market nor at the central bank. Hard reality is what Kenyans are facing daily because of following Western economic models which are only good for gay people.


"One man gives freely, yet gains even more; another withholds unduly, but comes to poverty. A generous man will prosper; he who refreshes others will himself be refreshed." Rev Canon Karanja.
Back to top
  |
guru267
#18 Posted : Thursday, December 01, 2011 1:44:46 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Insurgent wrote:
GenghisCapitalLtd wrote:
Feels like I am in a thriller movie (wanted to post this jana but Wazua was down ama was it my internet connection)


Now you are talking like Ruto. How long have you been in the NSE? If two years, kuwa mpole uone maneno. There are no movies in the stock market nor at the central bank. Hard reality is what Kenyans are facing daily because of following Western economic models which are only good for gay people.


@insurgent there is no need to take things so seriously..
@genghis was only making a light joke..
Mark 12:29
Deuteronomy 4:16
Back to top
  |
Scubidu
#19 Posted : Thursday, December 01, 2011 2:55:28 PM
Rank: Veteran

Joined: 9/4/2009
Posts: 700
Location: Nairobi
kizee1 wrote:
Sufficiently Philanga....thropic wrote:
Strictly speaking, the CBR should follow the inflation rate. So a 300 bps hike on paper sounds the like best rate hike regardless of what has caused the increase in inflation rate!
However, with inflation expected to cool in Q12012, this should be CBKs last rate hike (read pain to the public) and subsequent rates should come down!
I can do with 1 more rate hike for the sake of a better tomorrow, we all should!Of course the NSE will seriously bleed, and 2,700 we shall surely print!
BTW, @Kizee & Scubidu, where art thou!



i think the mpc shud be disbanded and cbks control over monetary policy shud be taken away, i beleive the market mechanism shud determine the optimal amount and price of money....sorry to divert from teh topic


It's the fiscal and monetary policies that are out of balance. The governor is currently implementing knee jerk reactionary policies, but i don't believe that one person is to blame. I think the CBK/MPC need more independence from Treasury (as they have monopoly on monetary tools).

They need to be able to steer Treasury in the right direction to avoid mismanagement and mixed signals. On person needs to be accountable and right now it's difficult to know exactly whose to blame.
“We are the middle children of history man, no purpose or place. We have no great war, no great depression. Our great war is a spiritual war, our great depression is our lives!" – Tyler Durden
Back to top
  |
KulaRaha
#20 Posted : Thursday, December 01, 2011 3:09:25 PM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
How can we blame Treasury when our MinFin is wanted for crimes against humanity?

The fault is ours!
Business opportunities are like buses,there's always another one coming
Back to top
  |
53 Pages<1234>»
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.