CBK sleeping on the job led to weak shilling
08 December 2011, 16:26
Nairobi - It has emerged that the recent depreciation of the shilling was as a result of a policy blunder by the Central Bank of Kenya(CBK), coupled with weak controls, Daily Nation reports.
Addressing the Parliamentary Committee investigating the depreciation of the shilling on Thursday, economist David Ndii told MPs that the 2009 fiscal stimulus package should have been scrapped in mid-2010, because all it did was to pump more money into circulation, increase demand, but it did not improve the supply of goods.
Ndii added that the right policy would have been to roll back the stimulus package in the 2010-2011 fiscal year. The house was made aware by Ndii that there had been an error in judgment, on the part of the CBK.
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