@Cde the CBK has a duty to ensure that growth does not fall any further since their targets for inflation & the currency have been met..

I vote they lower to 15% & hold until Q4!

I agree but as much as this will sound a conflict of interest & more populist, let the banks lower the rates on their own 1st this time. We have seen that they can starting with our very own dear KCB. Tumezoea vibaya. But you know how it is, both ways we win We await the 5th.

Funny article this. IMF team recommends that banking rates not to be capped and at the same time wants CBR to remain 18% for the next 6 months! This according to IMF will ensure inflation falls to single digits, KES survives internal & external econ shocks and makes KE GDP to grow 5.5%...!? I guess thats what you call the height of madness.

www.businessdailyafrica....6/-/nw0jpnz/-/index.html

Since international mothers & fathers aka IMF wants CBR at 18% till Dec 2012, forget the MPC reducing the rate...

CBR@18% for 7 months = CBK admitting it's pretty much clueless on how to shore up currency. Therefore you will be probably see shaky conviction in cutting the rate to around 16% to test the currency waters! Should the currency hold they may meet in a few weeks for a futher cut but should it weaken there could be small chaos on what to do.

In Prof is bold and has conviction in what he is doing, he should slash that rate to 12% or there about. Conditions favor a big cut. Credit expansion has slowed, inflation has dropped, Oil is down, Europe has some optimism and there is food in the market and more to be harvested. This is the time to cut the rate. Businesses have suffered and GDP growth will be weak if these rates remain where they are.

I expect nusu conviction from Prof though!

Uganda’s central bank on
Tuesday cut the benchmark lending rate by one percentage point for the second month in a row, seeking to stimulate economic growth as inflation eases.
http://www.theeastafrica.../-/10a7jec/-/index.html