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Law Capping interest rates
Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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Now imagine if CBK was forced to raise interest rates due to Ksh weakening. Uhuru reminds me of MOi in many ways Sehemu ndio nyumba
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Rank: Elder Joined: 3/19/2010 Posts: 3,505 Location: Uganda
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Let's just say the economy is just doing badly, poor leadership and corruption killing businesses.the banks blaming rates cap yet the rate capping started only 16 days to close of quarter 3 You think these billions in scandals have no effect on businesses? punda amecheka
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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Mainat wrote:Now imagine if CBK was forced to raise interest rates due to Ksh weakening.
Uhuru reminds me of MOi in many ways That day is fast approaching. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: New-farer Joined: 10/14/2016 Posts: 25 Location: Nairobi
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lochaz-index wrote:Mainat wrote:Now imagine if CBK was forced to raise interest rates due to Ksh weakening.
Uhuru reminds me of MOi in many ways That day is fast approaching. This one you are right and its scary. Now consider a scenario where the US fed raises its interest rate, the dollar strengthens, other currencies weaken and we have that huge dollar denominated debt. Interest rates will be raised to stem kes devaluation and we shall grind to a halt.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Yowel wrote:lochaz-index wrote:Mainat wrote:Now imagine if CBK was forced to raise interest rates due to Ksh weakening.
Uhuru reminds me of MOi in many ways That day is fast approaching. This one you are right and its scary. Now consider a scenario where the US fed raises its interest rate, the dollar strengthens, other currencies weaken and we have that huge dollar denominated debt. Interest rates will be raised to stem kes devaluation and we shall grind to a halt. Anarchy....  possunt quia posse videntur
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Rank: Veteran Joined: 8/10/2014 Posts: 992 Location: Kenya
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lochaz-index wrote:Mainat wrote:Now imagine if CBK was forced to raise interest rates due to Ksh weakening.
Uhuru reminds me of MOi in many ways That day is fast approaching. Ksh has already dropped twice to 102 in the past 5 days and CBK is selling dollars to keep it up. They cant keep doing that for long
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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watesh wrote:lochaz-index wrote:Mainat wrote:Now imagine if CBK was forced to raise interest rates due to Ksh weakening.
Uhuru reminds me of MOi in many ways That day is fast approaching. Ksh has already dropped twice to 102 in the past 5 days and CBK is selling dollars to keep it up. They cant keep doing that for long Something's going to have to give: either exchange or interest rates. I suspect CBK will let interest rates go up given they were opposed to the myopic rate cap anyways. This 6%(?!) growth will become 2%...remember the SGR eating ends soon too. Business opportunities are like buses,there's always another one coming
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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KulaRaha wrote:watesh wrote:lochaz-index wrote:Mainat wrote:Now imagine if CBK was forced to raise interest rates due to Ksh weakening.
Uhuru reminds me of MOi in many ways That day is fast approaching. Ksh has already dropped twice to 102 in the past 5 days and CBK is selling dollars to keep it up. They cant keep doing that for long Something's going to have to give: either exchange or interest rates. I suspect CBK will let interest rates go up given they were opposed to the myopic rate cap anyways. This 6%(?!) growth will become 2%...remember the SGR eating ends soon too. Actually, the interest cap will still be a problem because of the 70% floor, but also interest rates would need to go up to maybe kitu 14% for banks to go back to an even position Sehemu ndio nyumba
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Mainat wrote:KulaRaha wrote:watesh wrote:lochaz-index wrote:Mainat wrote:Now imagine if CBK was forced to raise interest rates due to Ksh weakening.
Uhuru reminds me of MOi in many ways That day is fast approaching. Ksh has already dropped twice to 102 in the past 5 days and CBK is selling dollars to keep it up. They cant keep doing that for long Something's going to have to give: either exchange or interest rates. I suspect CBK will let interest rates go up given they were opposed to the myopic rate cap anyways. This 6%(?!) growth will become 2%...remember the SGR eating ends soon too. Actually, the interest cap will still be a problem because of the 70% ceiling, but also interest rates would need to go up to maybe kitu 14% for banks to go back to an even position If CBR starts going up...maybe to 12%, we may see some respite. But then CBK will have to tackle this slowdown in credit growth....they are so stuck! Business opportunities are like buses,there's always another one coming
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Rank: New-farer Joined: 10/14/2016 Posts: 25 Location: Nairobi
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Interesting Statistics: in 2007/2008 and the chaos that erupted, kenya's benchmark interest rate was at 8.5% it went as high as 18% in 2012. Inflation in 2008/2009 was 32%, 2012 was around 18%. The currency devaluation was from 63 to 80 against the usd.
So if next year we dare repeat the past.
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Law Capping interest rates
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