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Kenya's Njuguna Ndung'u Shows Australia How It's Done, Cuts Rate By 100 Bps Due To "Increase In Economic Confidence"
Following on the widely telegraphed rate cut by the Australian central bank overnight to a record low 2.75%, here comes a truly surprise move out of the Kenya Central Bank, and its Governor Njuguna Ndung'u whose central bank just showed the world how it's really done:
- KENYA CENTRAL BANK CUTS BENCHMARK RATE TO 8.50% FROM 9.50%
- KENYA CENTRAL BANK SAYS CONFIDENCE IN ECONOMY HAS INCREASED
As long as the confidence is there... Incidentally, the expectations, by those who have nothing better to do than forecast what the Kenya central bank will do, was for a mere 25 bps cut. We expect the credit carry traders out of Niarobi to scramble for yield in places like Greece, now that their cost of funding has dropped by over 10%. The good news for those doing the inverse trade, and looking to trade Kenyan Eurodollar futures, or the "Kenyo-dollar" as the case may be, is that there still is a long way to go before all time lows rate lows are taken out.
In the global currency war, Kenya just may have far more ammo left than most developed world "ZIRP" banks.
Finally, for those wondering, the KCB governor has never worked at Goldman Sachs.
Prof. Njuguna Ndung'u
Prof. Njuguna S. Ndung'u was reappointed to serve as the Governor of the Central Bank of Kenya for a further four year term with effect from March 4, 2011. Prof Ndung'u is an Associate Professor of Economics at the University of Nairobi and holds a PhD in economics from the University of Gothenburg, Sweden, and master's and bachelor's degrees in economics from the University of Nairobi.
Prior to his appointment as Governor of the Central Bank of Kenya, Prof. Ndung'u was the Director of Training at the African Economic Research Consortium. He has lectured in advanced economic theory and econometrics at the University of Nairobi, where he earned the title of Associate Professor of Economics. He also worked as the Regional Programme Specialist for the Eastern and Southern Africa Regional Office, Nairobi, of the International Development Research Centre (IDRC), Canada; and at the Kenya Institute of Public Policy Research and Analysis (KIPPRA) as a Principal Analyst/Researcher and Head of the Macroeconomic and Economic Modelling Division.
Prof. Ndung'u has had extensive research and teaching work in various fields of economics, including macroeconomics, microeconomics, econometrics and poverty reduction. A long-time researcher and trainer with the AERC and MEFMI network, he has published in international journals as well as chapters in various books on economic policy issues, inflation, interest rate and exchange rate issues, financial management, public sector growth, external debt, financial liberalization in Anglophone Africa, structural adjustment, as well as on employment and labour market issues.
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of course kenyas economy has improved......TPTB are throwing wads of cash at africa right now...........its the last great place with oodles of debt potential.............poor africa......once they were physical slaves......now they will be debt slaves...............................
I think mass dismemberment is the "fat tail" there.
Keynesian Kenyan Kleptocrat.
...in search of a white sale and a pair of scissors...
that's where Mr. Hussein was born, isn't it?
We are all slaves...its just who has more 'freedom' between the shackles/cuffs and the skin?
.
In Africa, they have a pride and something humble that we in the west have lost due to technology...In some ways, they probably make fun of us - and so they should.
yes, what is going on ? Even India has cut rates 3 times in the last few months despite fairly bubbly Brent pricing.
And its not like food prices have come down much there either.
Fukkit.....Dow crosses 15,000 and will never go down again !
What about those old structured interest-president swaps?
And in Brazil the Central Bank just raised rates. Can anyone believe?
All EM should apply ZIRP now. Why pay 8-10% if you can pay 0%? And if you can't, there's always the printing press avaiable.
The dollar and yen collapse would come sooner.
Did Brazil actually just raise rates?
April 17th, to 7,5%.
u da man!
What....no *clicks* in his name?
+1 lol
I dare anyone on here to name another person who has the letter U as the third letter in their first and last name.
bonus points if you can find a person who has that and also has the word "dung" in their name.
Baurack O'dungholio
Huusein Obumba .... what do I win ?
How about Baruch Hussein Obummer? is that close enough
hey doc i havent taken the dip into the gold-en pool yet....i have a feeling we are going to see lower lows coming this year....im thinking 1200 will be my buy in........
Maybe it will..who knows. I just add to positions when the cash is available. Don't get cold feet if it does.
mao ze-dung??????
According to Akak that's spelled "Mousy Dung".
Raul Hauptman
Google it, it is a real name.
They'll have high confidence all the way to negative rates.
We be CONFIDENT!
Damn, so sick of hearing that....'Buck up lil pilgrims! Sure your life is shit and you'll die poor guaranteed, but us few bankers are really having fun! Be happy for us!'
Iowa central bank to cut rates in follow up move to Kenya. Arkansas to join Union...
Are they called Obamabucks? Do they have the ONES picture on them...
sounds better than plantation tokens...
Ah yes, the rest of the world saying "fuck it, whatever you print we can print better". The gig is up, got sound money?
Barack would be proud of his fellow countryman.
Just imagine what would happen if America cut it's rates from 9,5 down to 9,5%...
Prof. Njuguna S. Ndung'u....must be a Princeton Man.....
Hasn't even worked at a bank...and now he's running the show! Should end well....
if he ever discovers the art of printing money, the Kenian economy will surpass the American economy WITHIN 5 YEARS!!!
Well, neither did Bernanke, although he WAS LLoyd Blankfien's roomate at Harvard, which counts as "banking experience".
Bernanke attended Harvard University, where he lived in Winthrop House with the future CEO of Goldman Sachs, Lloyd Blankfein,
-wikipedia
Well, it was rumored both Ndung'u and Blankfein were supposed to resign last year...
He certainly fkd Soros right in the ass when he went to 18%.
http://www.xe.com/currencycharts/?from=KES&to=USD&view=10Y
you know the old joke "Death by booga-booga"?
Kenyasian policy!
How do I get a job like that?
It's the bankster equivalent of manning a radar station in Alaska.
So sell your soul and then piss off the Devil.
Any news on Zimbabwe CB ?
Zimbabwe do not have central bank. Mr Mugabi is their one man wonder with his own printing press, running it day and night long before the likes of bernanke took notice.
Prof. Njuguna S. Ndung'u has raised additional capital for his country via a mass email campaign declaring himself a prince and asking for "moneys" to be deposited into his unaccessible account which is being held for him with billions of US dollar but if you send just a few thousand today you will have it returned to you ten fold.
Coffee momentarily ejected from my nose when I read this! Hilarious!
+1000 for comedy.
Annnd it's Gono.
Wow!!! Kenya has sure moved up in the world... they've given the world the USA Kenysian President... and now the next likely replacement of Ctrl-P at the Marriner Eccles building. Definitely a black swan event...
Just wondering... is their stock exchange building constructed of thatch bundles daubed with cow shit?
Simon Black would know I bet, I'm sure he's base jumped off of it at least once during his adventures.
There are some interesting things about Kenya:
1) A lot of the population are farmers and make their own food and sell the surplus at the market. This means that the average Kenyan farmer keeps most of his income, as they do not pay taxes on the food they eat or the food they sell to neighbors or markets.
2) The banking system is not developed in the same sense (you could argue destroyed) as in the Western world. This means that the farmers (majority of the population) or other workers do not get loan to their homes. A positive consequence of this is that most homes, althogh modest, are financed by savings and equity.
3) The government do not redistribute the people's money to people who do not work or other group. This means that the local communities actually help eachother when someone need it, and thete is a will to help the neighbor (as opposed to countries with welfare states, where no one want to help anyone because the government will help them).
4) The Kenyan laws respect property rights.
I actually think the people in a country like that are quite lucky.