Banking

LONDON (Capiatla Markets in Africa) – The job of Bank of England governor could be considered a “poisoned chalice” by some possible candidates and finding a pro-Brexit economist to fill the role could be a challenge, according to former policy maker Martin Weale. “If following the appointment of the Cabinet, the chancellor wants someone who believes that Brexit is going to be wonderful, my guess is that’s going to give him a fairly short shortlist,” Weale,…

LAGOS (Capital Markets in Africa) – Struggling to hit their targets for inflation, central banks around the world are debating whether they need to alter what they’re aiming for. From the Federal Reserve to the European Central Bank, officials are studying their current strategies and whether they need to be changed to revive inflation as it keeps undershooting the levels deemed to represent price stability. Here’s a rundown of what some central banks are talking about: Federal Reserve…

NAIROBI (Capital Markets in Africa) – Kenya’s central bank kept its benchmark interest rate unchanged for a sixth consecutive time, saying inflation expectations remain well-anchored. The Monetary Policy Committee held the rate at 9%, Governor Patrick Njorogesaid Wednesday in a statement in the first rates decision since his reappointment for a second term. That was in line with the forecast of all six economists in a Bloomberg survey. Key Insights: The unchanged stance comes even as…

LAGOS (Capital Markets in Africa) – Nigeria’s central bank kept its benchmark interest rate on hold to battle persistently high inflation even as it seeks to boost lending to grow the economy. The Monetary Policy Committee unanimously decided to hold the rate at 13.5%, Governor Godwin Emefiele told reporters Tuesday in the capital, Abuja. All but one of the six economists in a Bloomberg survey forecast the unchanged stance and one predicted a 50 basis-point cut. Key…

LONDON (Capital Markets in Africa) – Lloyds Banking Group Plc and Standard Life Aberdeen Plc have reached a settlement in what was one of the most high-profile disputes in the U.K. fund management industry’s history. Lloyds, which wanted to pull a 104 billion-pound ($129 billion) mandate, will pay the asset manager 140 million pounds in cash as compensation, according to a statement from Standard Life on Wednesday. It will also leave about 35 billion pounds of the total until at…

NAIROBI (Capital Markets in Africa) – Kenyan banks are expected to lead a rally in local stocks as investors switch out of government bonds because of falling yields, said Muathi Kilonzo, head of equities at EFG Hermes Kenya Ltd. “When you look at yields in fixed income, they have started to come down and that is because there is a lot of liquidity so there will be an inflection point,” Kilonzo said. “As yields continue to…

JOHANNESBURG (Capital Markets in Africa)  – Citigroup Inc. invested to expand in South Africa. Now all the New York-based bank needs is deals. “We have in the two last cycles appropriated additional capital to continue to grow our business, but we haven’t seen as big a deal flow to be able to execute against that,” said Citigroup Chief Country Officer Peter Crawley. “We’re very much sitting on the side and battening down the hatches, planning for…