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Inflation rate for the month of July
Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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has the KNBS released inflation rates for the month of July. They were to be released today afternoon Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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Ericsson wrote:has the KNBS released inflation rates for the month of July.
They were to be released today afternoon With T-bills looking up, the inflation rate for July could only expected to face a certain direction. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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Downwards Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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has downward trend nothing less than 1.2% down LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Veteran Joined: 11/11/2006 Posts: 972 Location: Home
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Rank: Veteran Joined: 11/14/2006 Posts: 1,311
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Good news..... interest rates should now follow this trend next month. MPC rate should come down to 15% from August. At this rate the economy will be booming by Dec 2012.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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There's something that is not adding up with inflation and lending rates by CBK... If you look at the tbill rate behaviour it says otherwise about inflation nosediving... I'm finding CBK and treasury moves very confusing and this needs to be resolved asap to jumpstart the econ. Expensive lending rates, expensive tbills, falling inflation rates... WTH... Someone is lying. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Veteran Joined: 11/14/2006 Posts: 1,311
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hisah wrote:There's something that is not adding up with inflation and lending rates by CBK... If you look at the tbill rate behaviour it says otherwise about inflation nosediving...
What do you mean?
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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I share the sentiments with Rich on July inflation. Here is what he has said "The Inflation Rate cratered to 7.74% from 10.05% Last Time. I was an Outlier and had expected 8%. In Part, the Steep Drop is due to the High Base Effect of the Comparison from a Year Ago. Clearly Fuel bottomed out during this Reporting Period as well. The MPC are to be commended for getting ahead of the Curve with their 150 Basis Points Rate Cut. I think they have to cement that Advantage with a Further Cut of no less than 200 Basis Points and signal that they are ready to do more. The Shilling is exhibiting far less Beta than in 2011 and The Slow Down [The Economy has been strangled with the High Interest Rate Structure] is in danger of gaining traction and Velocity.We remain correlated to the Weather and Food Prices which requires a more activist Monetary Policy. If You are in the Money Markets or the bond Market, this Data is a Big Signal to extend Duration.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Am wth bwana hisah on this something is indeed not adding up...why is the govt borrowing so expensively? possunt quia posse videntur
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Rank: Veteran Joined: 9/4/2009 Posts: 700 Location: Nairobi
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hisah wrote:There's something that is not adding up with inflation and lending rates by CBK... If you look at the tbill rate behaviour it says otherwise about inflation nosediving...
I'm finding CBK and treasury moves very confusing and this needs to be resolved asap to jumpstart the econ. Expensive lending rates, expensive tbills, falling inflation rates... WTH... Someone is lying.
hehehe, @hisah. It's total confusion. Remember they've now upped the cbk overdraft to 19bln as at last week and that's priced at 16.50%. So why does gava luv being a price taker... borrowing from lender-of-last-resort (monetizing). Tbill rate behavior was following repo, but now with repo down the Tbill is in limbo. I think CBK and Treasury are on two completely different wavelengths. As for lending rates remain high... well that's a cartel you can't dictate to. “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
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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Impunity wrote:Ericsson wrote:has the KNBS released inflation rates for the month of July.
They were to be released today afternoon With T-bills looking up, the inflation rate for July could only expected to face a certain direction.   Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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maka wrote:Am wth bwana hisah on this something is indeed not adding up...why is the govt borrowing so expensively? 13% is still the cheapest debt in town whichever way you look at it! Tbill rates will fall when the CBR follows inflation down... And then stocks will be througj the roof Mark 12:29
Deuteronomy 4:16
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Rank: Member Joined: 8/17/2011 Posts: 207 Location: humu humu
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guru267 wrote:maka wrote:Am wth bwana hisah on this something is indeed not adding up...why is the govt borrowing so expensively? 13% is still the cheapest debt in town whichever way you look at it! Tbill rates will fall when the CBR follows inflation down... And then stocks will be througj the roof It is the cheapest, guru.. t bills are now being oversubscribed,its just a matter of time before the gov takes charge n push them down.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Lets forget about the tbills/bonds, CBR, lending rates etc fin jargon. Say in Dec 2011 your shopping basket required 5,000. Lets assume the basket contents have remained constant till end of July. Is this 5,000 still enough to purchase the same contents through this 7 month window of inflation nosedive? Have you increased say more milk or bread, eggs, etc with that inflation rate slamdunk to 7.74% from 19.7%...? Answer this honestly to yourself. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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the games that KNBS and CBK are playing will backfire big time. LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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hisah wrote:Lets forget about the tbills/bonds, CBR, lending rates etc fin jargon.
Say in Dec 2011 your shopping basket required 5,000. Lets assume the basket contents have remained constant till end of July. Is this 5,000 still enough to purchase the same contents through this 7 month window of inflation nosedive? Have you increased say more milk or bread, eggs, etc with that inflation rate slamdunk to 7.74% from 19.7%...?
Answer this honestly to yourself. Economics of the inflation The price of a basket of goods keeps going up year in year out unless a country is in deflation. Deflation is a negative inflation rate (below 0%) which is not desirable for a developing country like ours. Recently, the rate at which the price of a basket of good is rising has significantly declined. The inflation rate of 19.72% in Nov 2011 meant that the cost of a basket of goods was 19.72% more than in Nov 2010. The inflation rate of 7.74% in July 2012 means that the cost of a basket of goods is 7.74% more than in July 2011. It doesn’t mean that the cost of the basket of goods has declined. Truth be told, it’s good for us that the cost of a basket of goods has not gone up a whopping 19.7%. A low and stable inflation rate is what we need. So kudos that we have achieved a single digit inflation rate. Our short term target has been met
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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mwekez@ji wrote:hisah wrote:Lets forget about the tbills/bonds, CBR, lending rates etc fin jargon.
Say in Dec 2011 your shopping basket required 5,000. Lets assume the basket contents have remained constant till end of July. Is this 5,000 still enough to purchase the same contents through this 7 month window of inflation nosedive? Have you increased say more milk or bread, eggs, etc with that inflation rate slamdunk to 7.74% from 19.7%...?
Answer this honestly to yourself. Economics of the inflation The price of a basket of goods keeps going up year in year out unless a country is in deflation. Deflation is a negative inflation rate (below 0%) which is not desirable for a developing country like ours. Recently, the rate at which the price of a basket of good is rising has significantly declined. The inflation rate of 19.72% in Nov 2011 meant that the cost of a basket of goods was 19.72% more than in Nov 2010. The inflation rate of 7.74% in July 2012 means that the cost of a basket of goods is 7.74% more than in July 2011. It doesn’t mean that the cost of the basket of goods has declined. Truth be told, it’s good for us that the cost of a basket of goods has not gone up a whopping 19.7%. A low and stable inflation rate is what we need. So kudos that we have achieved a single digit inflation rate. Our short term target has been met What formula is used to draw the inflation equation? Is it absolute or generalistic formula? Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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mwekez@ji wrote:hisah wrote:Lets forget about the tbills/bonds, CBR, lending rates etc fin jargon.
Say in Dec 2011 your shopping basket required 5,000. Lets assume the basket contents have remained constant till end of July. Is this 5,000 still enough to purchase the same contents through this 7 month window of inflation nosedive? Have you increased say more milk or bread, eggs, etc with that inflation rate slamdunk to 7.74% from 19.7%...?
Answer this honestly to yourself. Economics of the inflation The price of a basket of goods keeps going up year in year out unless a country is in deflation. Deflation is a negative inflation rate (below 0%) which is not desirable for a developing country like ours. Recently, the rate at which the price of a basket of good is rising has significantly declined. The inflation rate of 19.72% in Nov 2011 meant that the cost of a basket of goods was 19.72% more than in Nov 2010. The inflation rate of 7.74% in July 2012 means that the cost of a basket of goods is 7.74% more than in July 2011. It doesn’t mean that the cost of the basket of goods has declined. Truth be told, it’s good for us that the cost of a basket of goods has not gone up a whopping 19.7%. A low and stable inflation rate is what we need. So kudos that we have achieved a single digit inflation rate. Our short term target has been met That's why I call it ponzinomics...
Anyway, let them slash the CBR by 400bps, flood the banks with easy credit and lets us celebrate the economy has been healed. Hurray!$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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