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Friday, October 07, 2011

Banking developments

The Central Bank of Kenya announced a 400 point interest rate rise to 11% in order to combat high inflation and stabilize the local currency, the Kenya Shilling, which has rapidly lost value against the dollar over the past couple of months (see previous post).  Bad news for those with loans and mortgages, however local commercial banks and money markets have been reportedly impressed by this show of affirmative action from the often dithering regulatory organisation.

At the same time, the UK's Bank of England announced a second massive round of quantitive easing - QE2 (the first was in 2009), in order to counter the effects of global economic slowdown.  Bad news for UK savers and pensioners.  The question being asked is; will this work?

www.telegraph.co.uk/finance/financialcrisis/8812260/World-facing-worst-financial-crisis-in-history-Bank-of-England-Governor-says.html

5 comments:

  1. Anonymous3:21 pm

    12 UK banks have also just been downgraded by Moody,
    Not good, You just know they will pass on their higher borrowing costs to the common man. Double dip recession anyone?

    ReplyDelete
  2. Anonymous9:23 am

    Will this work?

    No.

    ReplyDelete
  3. This financial crisis makes The Great Depression of the 1930's look like child play!

    ReplyDelete
  4. Anonymous1:32 pm

    http://www.nation.co.ke/business/news/Equity+banks+nine+month+after+tax+profit+hits+Sh7bn+/-/1006/1261156/-/ynmk8m/-/index.html

    is this country in the real world ?? how does a bank make this much after only being around for about 10 years??

    ReplyDelete
  5. With the statute of a regional multilateral development bank, the African Development Bank is engaged in promoting the economic development and social progress of its regional member countries in Africa.

    Each member country is represented on the Board, but their voting power and influence differs depending on the amount of money they contribute to the AfDB.

    ReplyDelete