Banking | - Part 67

Kenya’s MPC Cuts Rates to Spur ‘Below-Potential’ Economic Growth

NAIROBI (Capital Markets in Africa) – The Central Bank of Kenya unexpectedly cut its key policy rate by 50 basis points to 9% today, citing well-anchored expectations of inflation and growth below its potential. The decision was against our forecast and the median forecast of economists in a Bloomberg survey for no change. Well-anchored inflation expectations and below potential economic output gives room for accommodative monetary policy, according to MPC. Food and fuel costs are…

Tie-Up Plan for Three Ghanaian Lenders Is Said to Break Down

Posted on by The Editorial Team

ACCRA (Capital Markets in Africa) – Three Ghanaian banks are close to abandoning talks for a merger as the two smaller parties contend that their operational models are incompatible with the bigger counterpart, according to two people familiar with the matter. Premium Bank Ltd. and BSIC Ghana Ltd. are no longer keen for a tie-up with GN Bank Ltd. and will pursue talks with other parties, said the people, who asked not to be identified because they’re…

South Africa Central Bank Nationalization Expensive, Governor Says

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JOHANNESBURG (Capital Markets in Africa) – The nationalization of the South African Reserve Bank could be a protracted and expensive legal process because some of its shareholders seek to make a profit out of the move, Governor Lesetja Kganyago said. “A group of shareholders is agitating for the SARB’s nationalization as they believe that they are entitled to a share of the assets of the SARB and see this as an opportunity to make enormous profits at…

Nigeria Holds Key Rate at Record High to Stem Inflation Risk

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LAGOS (Capital Markets in Africa)- Nigeria’s central bank held its main lending rate at a record high to curb inflationary pressures anticipated with election spending, and proposed ways to increase credit in the economy. The Monetary Policy Committee voted to leave the benchmark rate at 14 percent, Governor Godwin Emefiele told reporters on Tuesday in the capital, Abuja. That was in line with the forecasts from all but one of 10 economists surveyed by Bloomberg. Three MPC members voted…

Nigerians Bury Cash in Backyards as Mobile Money Stumbles

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LAGOS (Capital Markets in Africa) – Every few days, Tasiu Abdurrahman takes the money he makes from selling spices in Nigeria’s biggest northern city and buries it in his yard. The 55-year-old closed his bank account eight years ago after growing disillusioned with standing in long lines for hours to deposit or withdraw cash. Abdurrahman is one of about 50 million of the unbanked in Nigeria, which despite having Africa’s largest mobile-phone market, is only just opening…

South Africa Reserve Bank Warns of Price Risks as It Holds Key Rate

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JOHANNESBURG (Capital Markets in Africa) – South Africa’s central bank warned of upside risks to inflation as it held the key interest rate at a two-year low. The Monetary Policy Committee unanimously decided to keep the repurchase rate at 6.5 percent Thursday. All 15 economists in a Bloomberg survey predicted the freeze. The rand had its worst month in more than two years in June as the U.S. and China exchanged tariff blows at a time when…

Mauritian Central Bank Urges Lenders to Boost Deposit Rates

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PORT LOUIS (Capital Markets in Africa) – Mauritius’s central bank urged commercial lenders benefiting from the lowest official interest rates in more than a decade to increase the amount they pay depositors. Bank of Mauritius Governor Yandraduth Googoolye said he plans to put the revision of savings rates on the agenda at a forthcoming meeting with lenders. “Bearing in mind that in 2015 banks had lowered interests rates without any change in the key repo rate, I know…

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