Nigeria Holds Key Rate at Record High Before Presidential Vote

Nigeria Holds Key Rate at Record High Before Presidential Vote

LAGOS (Capital Markets in Africa) – Nigeria’s central bank held its key rate at a record high as it warned of rising inflationary pressures, it said. The decision to retain the rate at 14 percent was unanimous, Governor Godwin Emefiele told reporters Tuesday in the capital, Abuja. All eight economists in a Bloomberg survey forecast the pause. Key Insights By keeping the rate at this level for more than two years, the bank has sought…

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Nigeria Approves MPC Members to Break Hiatus on Policy Rate

Nigeria Approves MPC Members to Break Hiatus on Policy Rate

LAGOS (Capital Markets in Africa) – Nigeria’s monetary-policy authorities can finally get back to the business of setting the country’s interest rates following a four-month hiatus. The Nigerian Senate on Thursday approved the appointment of two new central bank deputy governors and three other Monetary Policy Committee members, paving the way for a meeting to review interest rates for the first time this year. The lawmakers confirmed President Muhammadu Buhari’s nomination of Aishah Ahmad and Edward Adamu as…

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This Is What Africa’s Central Banks Are Debating This Month

This Is What Africa’s Central Banks Are Debating This Month

LAGOS (Capital Markets in Africa) – Central banks in five major sub-Saharan African economies are scheduled to announce their interest-rate decisions in the next three weeks, including Nigeria if lawmakers get around to approving Monetary Policy Committee nominees. Slower inflation and more stable exchange rates have built a case for looser monetary policy in Kenya, Ghana, South Africa and Nigeria. Economic growth near 1 percent in South Africa and Nigeria, which make up half of…

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United Kingdom Manufacturing Sums Up Interest-Rate Dilemma for the BOE

United Kingdom Manufacturing Sums Up Interest-Rate Dilemma for the BOE

LONDON (Capital Markets in Africa) – For a picture book example of the dilemma facing Bank of England policy makers, look no further than the U.K. manufacturing industry. On the downside for the economy, demand and confidence at factories is declining and investment is weakening, according to a survey from the Confederation of British Industry. But, in a sign of a potential squeeze that could intensify price pressures, the percentage of firms operating below capacity is the…

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Namibia Cuts Rate for First Time in 5 Years as Inflation Slows

Namibia Cuts Rate for First Time in 5 Years as Inflation Slows

WINDHOEK (Capital Markets in Africa) – Namibia’s central bank reduced its key rate for the first time since 2012 as consumer prices rose at the slowest pace in almost two years last month and the economy contracts. The Monetary Policy Committee reduced the repo rate by 25 basis points to 6.75 percent, Bank of Namibia Deputy Governor Ebson Uanguta told reportersWednesday in capital, Windhoek. Inflation in the southwest African nation, the world’s biggest producer of marine diamonds, was 5.4…

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Nigerian Central Bank to Keep Tight Monetary Policy, Nnanna Says

Nigerian Central Bank to Keep Tight Monetary Policy, Nnanna Says

LAGOS (Capital Markets in Africa)- Nigeria’s central bank will keep monetary policy tight as dollar shortages persist, Deputy Governor Joseph Nnanna said Now is not the time to ease policy, he said in an interview Thursday in the capital, Abuja. Inflation slowed for a third month in April, but at 17.2 percent remains almost double the upper limit of the bank’s 6 percent to 9 percent target. “We are battling with liquidity as it were, so tight monetary…

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Ghana central bank slashes benchmark interest rate

Ghana central bank slashes benchmark interest rate

ACCRA (Capital Markets in Africa) – Ghana’s central bank slashed its benchmark interest rate on Monday by two percentage points to 23.5 percent, noting signs inflation was trending downwards, in a move that may help spur lending and business activity. Ghana was for years one of Africa’s fastest-growing economies but growth slumped in 2014 due to falling commodities prices, high inflation, a big budget deficit and public debt. As inflation eases, the bank can lower…

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