Disagree. This is a perfect opportunity for bankers to eat. You can price funding at zero cost if you want, correct?

quote=KulaRaha]Reference rate = waste of time!

How can you have a rate that manages loans, yet doesn't managed deposits?

Another exercise in folly.[/quote]

Do we have a banker in the house? Can someone make this Kenya Bank Reference Rate (KBRR) more idiot proof. Is it the rate my bank should base my loan on? At what point do I know that my bank has added too much on top and at what point should I sue my bank for overcharging me? What's the new expected base lending rate for banks as per this?

Its not retrospective.
As far as I can tell, if GoK borrows at 2% higher than this, I as a banker can charge large companies 2% more than GoK (i.e. 13%), I can then charge kamau 5% higher than this.
End game is that status quo remains

But the CBRR has already been set at 9%! Unless macroeconomic Indicators change "drastically",this is the CBRR untill june next year,Maina. Banks will now make lending decisions with CBRR in focus. Banks cant fight the tide this time..the wind blowing against the interest rates is too much!! Noise everywhere, not different from the 2002 clamor for a new constitution. it would look pretty shameless for them to maintain status quo the way the KBA chairman is alluding to..