That 150bps CBR rate hike is shock therapy for KES bears. But why such a drastic hike when the econ is already on a slump since Q4 2014? Recession nightmare coming soon! All those profit warnings and profits dips that have been announced will definitely turn to losses since the weak econ legs have been chopped off.
@mnandii, though the market is oversold the shock of that rate hike will not offer any support at 4700. I think the market will break below that level for an extended slide towards 4400-4500 before any meaningful bounce. Perfect storm as the bull trap tightens with the econ sails facing headwinds.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!