Banking | - Part 11

Yellen Expects High Inflation Through Mid-2022 Before Easing

NEW YORK (Capital Markets in Africa) – Treasury Secretary Janet Yellen said she expects price increases to remain high through the first half of 2022, but rejected criticism that the U.S. risks losing control of inflation. Inflation is expected to ease in the second half as issues ranging from supply bottlenecks, a tight U.S. labor market and other factors arising from the pandemic improve, Yellen said on CNN’s “State of the Union” on Sunday. The…

Credit Suisse to Pay $475 Million to Settle Mozambique Case

Posted on by The Editorial Team

MAPUTO (Capital Markets in Africa) – Credit Suisse Group AG agreed to pay almost $475 million to resolve multiple investigations into its role in a fundraising scandal that saw hundreds of millions looted from Mozambique and tipped the country into economic crisis. The Zurich-based bank said it expects to take a $230 million charge in the third quarter as a result of the settlement, a further hit for shareholders after the bank was buffetted by…

Bailey Says Bank of England ‘Will Have to Act’ on Inflation

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LONDON (Capital Markets in Africa) – Bank of England Governor Andrew Bailey moved to strengthen the case for raising interest rates, saying the central bank will “have to act” to curb inflationary forces and warning higher energy costs mean price pressures will linger. Speaking to an online panel organized by the Group of 30, Bailey said that while central banks don’t have the tools to counter supply disruptions and he still believes the recent acceleration…

South Africa Rate-Hike Bets Jump on Upside Risks to Inflation

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JOHANNESBURG (Capital Markets in Africa) – Traders raised bets that South Africa’s central bank will raise interest rates in November after it warned of upside risks to its inflation outlook. Forward-rate agreements starting in two months, used to speculate on borrowing costs, are now pricing in almost 40 basis points of tightening by year-end. Less than a week ago, those contracts were predicting just an 80% probability of a quarter-point increase, before the South African…

Angola’s Central Bank to Focus on New Mandate From Start of 2022

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LUANDA (Capital Markets in Africa) – Angola’s central bank will focus on inflation and then financial stability from the start of next year after lawmakers agreed to change its mandate, Governor Jose de Lima Massano said. Parliament on Sept. 1 approved a law to boost the central bank’s independence by changing the way the governor is appointed and the mandate of the bank. At a meeting of the central bank’s monetary policy committee on Thursday, the first since the…

Fitch Ratings: Synthetic Libor Proposal Would Minimise Near-Term Risk for UK RMBS

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LAGOS (Capital Markets in Africa) – Fitch Ratings-London, Milan-01 October 2021: The UK Financial Conduct Authority’s (FCA) proposal to permit the use of synthetic sterling Libor fixings beyond end-2021 would lower sterling Libor transition risk for legacy UK RMBS next year, Fitch Ratings says. If adopted, the transition period for affected transactions would effectively be extended by 12 months, during which Libor exposure will decrease further. The FCA said on 29 September it would require…

Growth in Focus as Morocco Set to Hold Rates: Decision Day Guide

Posted on by The Editorial Team

CASSABANLA (Capital Markets in Africa) – Morocco’s central bank is expected to keep its benchmark interest rate at a record low as subdued inflation gives policymakers space to focus on a priority set by the king — reviving an economy battered by Covid. Tuesday’s rate decision comes 10 days before a highly anticipated address by King Mohammed VI to the newly elected parliament, in which he’s expected to put economic growth at the top of…

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