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CBK MPC Meet!!!
Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Sufficiently Philanga....thropic wrote:XSK wrote:Will the banks take the cue? Only when TBill rates top out. The 182 paper surged by almost 50bps in this week's auction  ... and the 91 day tbill has also surged. This is largely because banks have run to the Term Auction Deposits that are offering far better returns than the tbills. See, 91 day tbill rate: 10.78% 28 day term auction deposit: 15.85% ... but pressure is being put on the banks to lower they lending rates. watch the MPs with their renewed fight. The public may also join if nothing happens soonest
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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Kenya's shilling weakened in after-hours trading on Thursday after the central bank cut its key lending rate by a bigger-than-expected 150 basis points to 16.5 percent. The shilling traded at 84.7 per dollar after the rate cut from 84.25 before the Monetary Policy Committee's decision, Thomson Reuters data showed. http://af.reuters.com/ar...s/idAFJOE86406020120705
GOD BLESS YOUR LIFE
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Rank: Elder Joined: 10/1/2009 Posts: 2,436
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mwekez@ji wrote:Sufficiently Philanga....thropic wrote: I also think. Notice MPC will now be meeting 2 times in a month I was puzzled by this - I mean, you meet more frequently when there is instability and should be less frequently when there's stability? 
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Intelligentsia wrote:mwekez@ji wrote:Sufficiently Philanga....thropic wrote: I also think. Notice MPC will now be meeting 2 times in a month I was puzzled by this - I mean, you meet more frequently when there is instability and should be less frequently when there's stability? Yep. This MPC will be watching instability closely. But they are unlikely to raise the CBR again if things get bad. They will just have to use other instrument(s) if that happens, something like CRR
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Cde Monomotapa wrote:guru267 wrote:Cde Monomotapa wrote:Hold CBR @18% some more. Let the feed-through preceed. Personally, easing as from Q4 will do. Cut based on banked longrains harvests & energy reliefs in the comfort of short rains. @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. Looks like we struck a fine balance 16.5%. Kazi Iendelee!
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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The word bimonthly is used to mean 'twice a month' or 'once every two months'. CBK has indicated that it is reverting to bimonthly meetings - once every 2 months? Are we out of the woods?
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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mwekez@ji wrote:The word bimonthly is used to mean 'twice a month' or 'once every two months'. CBK has indicated that it is reverting to bimonthly meetings - once every 2 months? Are we out of the woods? Bimonthly is ambiguous as it gets. It could mean both?!
http://oxforddictionarie...nth-or-every-two-months
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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hisah wrote:mwekez@ji wrote:The word bimonthly is used to mean 'twice a month' or 'once every two months'. CBK has indicated that it is reverting to bimonthly meetings - once every 2 months? Are we out of the woods? Bimonthly is ambiguous as it gets. It could mean both?!
http://oxforddictionarie...nth-or-every-two-months
True. ... Before MPC started the monthly meetings from Sept 2011, they were holding them once every 2 months. Is that what we reverting to? If so, does it mean they are that confident that we are out of the woods? Have a look at the past events here http://www.centralbank.go.ke/Go...ediaReleasesControl.aspx
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Rank: New-farer Joined: 8/18/2011 Posts: 44
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How will the reduction of the CBR rate from 18% to 16.5% affect the Money Market Returns (treasury bill rate returnd and Money Market linked Unit trusts? Can someone please explain in a simple language.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Thermostatic Investor wrote:How will the reduction of the CBR rate from 18% to 16.5% affect the Money Market Returns (treasury bill rate returnd and Money Market linked Unit trusts? Can someone please explain in a simple language. The money markets are still unclear. But should the CBR be cut in one swoop by around 400bps or greater, that would mean it's time to start exiting the money market. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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hisah wrote:mwekez@ji wrote:The word bimonthly is used to mean 'twice a month' or 'once every two months'. CBK has indicated that it is reverting to bimonthly meetings - once every 2 months? Are we out of the woods? Bimonthly is ambiguous as it gets. It could mean both?!
http://oxforddictionarie...nth-or-every-two-months
Prof. Hisah. Tell 'em.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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The Banksters will not reduce lending rates because of the following:-
1. Liquidity is still tight -CBK still engaged in OMO via Repo's... etc...tightening the money markets in the process thus T-Bills have been rising and the interbank rate is still high...pushing the cost of funds for banksters...
2. Protect margins-Faced with low credit uptake, reduced spreads (high cost of funds) and shrinking loan books the Banksters have no option but to keep lending rates where they're to protect margins and their super normal profits.
Conclusions
The rate cut will have no impact on the money markets...since CBK is still maintaining its tight monetary stance as stated in 1.
Now let's see which Banksters will sacrifice margins by reducing lending rates in a bid to grow their loan books, my crystal ball tells me KCB or BBK might!
KCB-Loan book shrunk in Q1 2012
BBK-Loan book has been stagnant for some time...they need to start lending.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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the deal wrote:The Banksters will not reduce lending rates because of the following:-
1. Liquidity is still tight -CBK still engaged in OMO via Repo's... etc...tightening the money markets in the process thus T-Bills have been rising and the interbank rate is still high...pushing the cost of funds for banksters...
2. Protect margins-Faced with low credit uptake, reduced spreads (high cost of funds) and shrinking loan books the Banksters have no option but to keep lending rates where they're to protect margins and their super normal profits.
Conclusions
The rate cut will have no impact on the money markets...since CBK is still maintaining its tight monetary stance as stated in 1.
Now let's see which Banksters will sacrifice margins by reducing lending rates in a bid to grow their loan books, my crystal ball tells me KCB or BBK might!
KCB-Loan book shrunk in Q1 2012
BBK-Loan book has been stagnant for some time...they need to start lending. Just in: BBK have reduced their base lending rate by 1.5% to 21%
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Rank: Member Joined: 2/13/2011 Posts: 284 Location: Nairobi
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Also think Stanchart and BBK will lead the way in reducing their rates. Member and KCB will continue with their high rates and there will jus give some smart talk on why they need to maintain the high rates. unfortunately th common mwananchi will find it better to borrow at Eqty wit high rates n avoid other banks (read Barclays) which has lower rates; av neva understood this.
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Rank: Member Joined: 8/29/2008 Posts: 571
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GADAFFI:>>Its because Equity gives loans to almost every idiot walking in through their doors.The other banks have stringent conditions one must meet to qualify for a loan.Equity is for people in informal sector without payslips etc...But Stanchart is for a different group of people who have more means and easily meet loan conditions unlike Equity's customers.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Ali Baba wrote:GADAFFI:>>Its because Equity gives loans to almost every idiot walking in through their doors.The other banks have stringent conditions one must meet to qualify for a loan.Equity is for people in informal sector without payslips etc...But Stanchart is for a different group of people who have more means and easily meet loan conditions unlike Equity's customers. Don't be harsh to those who Barclays and Stanchart don't/cant welcome to their lobbies because they smell of sweat, cow/chicken poop and they who wear muddy gumboots "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Member Joined: 8/29/2008 Posts: 571
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MUCHR:>> I just used that term figuratively.I mean't "multitude" of people walking through Equity's doors,it was not in haughty contempt.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Good stuff in there answering enough Qs
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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the deal on Friday, July 06, 2012 4:11:38 PM wrote:Just in: BBK have reduced their base lending rate by 1.5% to 21% http://www.theeastafrican.co.ke...6/-/ch3447z/-/index.html... and may all the other banks follow suit
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Rank: Elder Joined: 2/10/2007 Posts: 1,587
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They soon will. KCB might follow BBK.
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