Banking

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…

LUSAKA (Capital Markets in Africa) – Zambian President Hakainde Hichilema named Denny Kalyalyaas central bank governor, returning the highly-regarded economist to the job 13 months after his shock dismissal hit the nation’s currency and dollar bonds. Kalyalya’s appointment is effective immediately and subject to lawmakers’ approval, the presidency said in an emailed statement Monday. His placement follows Hichilema’s selection of other seasoned officials to fill key economic posts, including that of Situmbeko Musokotwane as finance minister and…

JOHANNESBURG (Capital Markets in Africa) – South Africa’s central bank held its benchmark interest rate for a seventh straight meeting and turned more hawkish on raising borrowing costs through 2023. The monetary policy committee kept the repurchase rate at 3.5%, Governor Lesetja Kganyago said Thursday in an online briefing. The decision by the five-member panel was unanimous, the same as in July. The key rate remains at the lowest level since it was introduced in 1998. The…

JOHANNESBURG (Capital Markets in Africa)- Rand Merchant Investment Holdings Ltd. will divest from insurers Discovery Ltd. and Momentum Metropolitan Holdings Ltd. as part of a wider restructuring of the South African investment group. The firm is planning a rights issue of as much as 6.5 billion rand ($440 million) to facilitate the move, according to a Monday statement. The proceeds will be used to pay down debt and are required for the two exits to proceed,…

NEW YORK M(Capital Markets in Africa) – The Federal Reserve will probably hint at its meeting next week that it is moving toward scaling back monthly asset purchases and make a formal announcement in November, according a Bloomberg survey of economists. The survey of 52 economists also predicted the U.S. central bank would hold interest rates near zero through 2022 before delivering two quarter-point increases by the end of the following year. The Federal Open…

CAIRO (Capital Markets in Africa) – Egypt left interest rates unchanged Thursday as authorities weigh the potential impact of U.S. Federal Reserve tapering on the local debt market. The central bank maintained the benchmark deposit rate at 8.25% and the lending rate at 9.25%, the Monetary Policy Committee said in a statement. All 13 economists surveyed by Bloomberg predicted what is Egypt’s seventh consecutive hold, after combined cuts of 400 basis points last year. The…

JOHANNESBURG (Capital Martkets in Africa) – Standard Bank Group Ltd.’s goal of adding at least 10 millioncustomers ahead of a 2025 deadline has set the stage for a tug-of-war over Africa’s wealthiest clients. The biggest lender in Africa, with a 160-year history on the continent and a presence in 20 countries, has the advantage of scale over its peers as it looks to grow its customer base to more than 25 million. But persuading the most…