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How CBK fought and Lost the Inter-banking Lending Market Wars

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Cde Monomotapa		#31 Posted : Wednesday, September 07, 2011 4:58:41 PM
Rank: Chief Joined: 1/13/2011 Posts: 5,964		The gamblers have to be shaken out Kenya is a developing and NOT a developed nation so rates have to be reasonably priced and that's what CBK works on everyday but these cyclical shocks spring up at times but a normal and thriving year for Kenya recently was 2010..good rain, plenty food good business. Don't despair we'll soon be back bigger & better
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SAC Cohen		#32 Posted : Wednesday, September 07, 2011 4:59:38 PM
Rank: Member Joined: 1/3/2011 Posts: 129 Location: Nairobi		KulaRaha wrote: I think to be fair the issue is being clouded. Inflation may be imported or supply side, I don't argue, but I think the issue on hand is the CBK handling of matters. A lame duck approach early on led to rampant speculation, mostly by banks CBK cannot discipline. A total turnaround then occurred, and draconian measures came next, which caused the liquidity crunch. Now, this has been replaced with opacity, as in no one knows how the window rate is measured...followed by a bit more confusion, like selling tiny amounts of forex in the market yesterday. Too much confusion reigns. What would be desirable is stability, a serious, mature, non-academic approach to matters. Remember, you can defend either your currency, or your interest rates, but not both! Make a choice, and stick to it. SPOT ON!
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kizee1		#33 Posted : Wednesday, September 07, 2011 5:18:20 PM
Rank: Member Joined: 9/29/2010 Posts: 679 Location: nairobi		Cde Monomotapa wrote: The gamblers have to be shaken out Kenya is a developing and NOT a developed nation so rates have to be reasonably priced and that's what CBK works on everyday but these cyclical shocks spring up at times but a normal and thriving year for Kenya recently was 2010..good rain, plenty food good business. Don't despair we'll soon be back bigger & better professor ndungu? its a pleasure to have u on wazua
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accelriskconsult		#34 Posted : Wednesday, September 07, 2011 5:34:36 PM
Rank: Member Joined: 4/2/2011 Posts: 629 Location: Nai		This is one of the best debates to ever occur on Wazua with participants defending their positions with good arguments. No wonder the usual jokers and name callers have opted out. My 2 cents, the CBK opted for short term measures which the banks had foreseen and strategised for. Additionally, some of the players may have enjoyed information assymetry (known for sure what measures the CBK was going to take). Complete openness or extreme secrecy is necessary for effective policy setting.Strategic direction is also important. I sense a CBK that is unable to choose between economic growth and price stability.
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Mainat		#35 Posted : Wednesday, September 07, 2011 5:44:22 PM
Rank: Veteran Joined: 11/21/2006 Posts: 1,590		I think there is definitely confusion in the CBK office. Its core mandate is controlling inflation. It has secondary mandate to support economic growth. I think the secondary mandate is far too broad and unfocused such that when you get a weak governor; rising inflation (driven by a combination of demand and supply factors) economic growth threatened by external factors, CBK becomes like that hyena that was caught by two smells at road junction. This economy really misses Daudi Mwiraria who despite his liking for a brown envelope or two knew monetary like the back of his hand... Sehemu ndio nyumba
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Cde Monomotapa		#36 Posted : Wednesday, September 07, 2011 6:51:13 PM
Rank: Chief Joined: 1/13/2011 Posts: 5,964		kizee1 wrote: Cde Monomotapa wrote: The gamblers have to be shaken out Kenya is a developing and NOT a developed nation so rates have to be reasonably priced and that's what CBK works on everyday but these cyclical shocks spring up at times but a normal and thriving year for Kenya recently was 2010..good rain, plenty food good business. Don't despair we'll soon be back bigger & better professor ndungu? its a pleasure to have u on wazua LoL!! How do U like my signature on the bank notes ;-) it's been an exciting thread indeed @accel
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Cde Monomotapa		#37 Posted : Wednesday, September 07, 2011 6:57:34 PM
Rank: Chief Joined: 1/13/2011 Posts: 5,964		Maybe I should apply for the position of "OFFICIAL GOVT. ECONOMIC SPOKESMAN - WAZUA" too. Naomba hii serekali.
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KulaRaha		#38 Posted : Wednesday, September 07, 2011 9:50:30 PM
Rank: Elder Joined: 7/26/2007 Posts: 6,514		Cde Monomotapa wrote: Maybe I should apply for the position of "OFFICIAL GOVT. ECONOMIC SPOKESMAN - WAZUA" too. Naomba hii serekali. With the way things are deteriorating, there's going to be an opening high up in CBK soon, so you can even apply for that job! Business opportunities are like buses,there's always another one coming
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Cde Monomotapa		#39 Posted : Wednesday, September 07, 2011 10:04:33 PM
Rank: Chief Joined: 1/13/2011 Posts: 5,964		KulaRaha wrote: Cde Monomotapa wrote: Maybe I should apply for the position of "OFFICIAL GOVT. ECONOMIC SPOKESMAN - WAZUA" too. Naomba hii serekali. With the way things are deteriorating, there's going to be an opening high up in CBK soon, so you can even apply for that job!
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VituVingiSana		#40 Posted : Thursday, September 08, 2011 8:16:48 PM
Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi		Or CBK Governor should use the tried & tested method. Blame KenolKobil Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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Wazua » Investor » Economy » How CBK fought and Lost the Inter-banking Lending Market Wars

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