The accommodative financial environment created by the quantitative easing policy has been firmly supporting such developments. It could be said that the policy has contributed to improving  BIS Review 20/2006  3  the rate of return on capital and to raising corporate profits, as it enabled lending rates to decline even while the economic outlook was gradually brightening.
A well known fact is that a financial boom can trigger an overvaluation of a currency if adjustments do not take place over time. The Kenya School of Monetary Studies is well placed to provide this leadership and it is challenged to do so. Therefore, these types of Seminars should be the norm on an annual basis.