The Monetary Policy committee will tomorrow  have their monthly meeting where they decide how to deal with serious matters such as the the Central Bank rate, which is basically, the rate at which the central bank loans money to banks, and which should dictate the rate at which banks loan money to their clients. If the central bank lower the CBR then banks should lower their lending rates.

The Monetary committee will probably then go out and crunch numbers, starting with fact that with the month on month inflation has continued declining with a drop of 0.77% to 10.05%, and with the dollar having few high spurts to 86.2 but mainly staying in the 84.4 region, it has been a relatively stable month. They will go on to note that the economy growth is being stifled by the high CBR rate of 18% and everyone will expect them to lower it. We will wait with bated breath call our bank managers waiting for the CBR rate to go down so that we may borrow tonnes of money to splurge on a holiday somewhere in the Philippines with our little dog, Spot.

It really doesn’t matter what they say at the bottom of the report, unless of course they raise it. If they raise it all hell will break loose, if they decide to drop it or keep it constant you might as well tell spot to unpack his bags because the only Philippine he will meet is a Latin American clown who had a Philippine wife, retired to Kenya and does circus acts for free at children’s parties. This is because the truth is if they lower the rate it will have little to no effect on us at all. When questioned they will blame it on a volatile market or on ever shifting exchange rates; heck they could pin the blame on the lowered CBR rates saying that they are afraid it might breed instability.