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CBK MPC Meet!!!
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mwekez@ji
#161 Posted : Thursday, July 05, 2012 5:48:04 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
Sufficiently Philanga....thropic wrote:
XSK wrote:
mwekez@ji wrote:
cut by 1.5% to 16.5%

http://www.centralbank.go.ke/do...-%20July%205,%202012.pdf


Will the banks take the cue?

Only when TBill rates top out. The 182 paper surged by almost 50bps in this week's auctionSad


... 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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  | | Edit by user: Thursday, July 05, 2012 5:51 PM | Reason: Not specified
youcan'tstopusnow
#162 Posted : Thursday, July 05, 2012 5:56:09 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
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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WWW
  | | Edit by user: Thursday, July 05, 2012 5:57 PM | Reason: Not specified
Intelligentsia
#163 Posted : Thursday, July 05, 2012 6:17:40 PM
Rank: Elder

Joined: 10/1/2009
Posts: 2,436
mwekez@ji wrote:
Sufficiently Philanga....thropic wrote:
mwekez@ji wrote:
cut by 1.5% to 16.5%

http://www.centralbank.go.ke/do...-%20July%205,%202012.pdf

Testing the waters?


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? d'oh!
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mwekez@ji
#164 Posted : Thursday, July 05, 2012 6:30:08 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
Intelligentsia wrote:
mwekez@ji wrote:
Sufficiently Philanga....thropic wrote:
mwekez@ji wrote:
cut by 1.5% to 16.5%

http://www.centralbank.go.ke/do...-%20July%205,%202012.pdf

Testing the waters?


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? d'oh!


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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Cde Monomotapa
#165 Posted : Thursday, July 05, 2012 11:31:26 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
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 smile We await the 5th.

Looks like we struck a fine balance smile 16.5%. Kazi Iendelee!
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mwekez@ji
#166 Posted : Friday, July 06, 2012 8:40:02 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
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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hisah
#167 Posted : Friday, July 06, 2012 8:56:10 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
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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mwekez@ji
#168 Posted : Friday, July 06, 2012 9:25:46 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
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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Thermostatic Investor
#169 Posted : Friday, July 06, 2012 10:19:10 AM
Rank: New-farer

Joined: 8/18/2011
Posts: 44
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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hisah
#170 Posted : Friday, July 06, 2012 11:58:05 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
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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