Banking | - Part 85

Ghana Cuts Key Rate to Lowest Since 2015 as Inflation Slows

ACCRA (Capital Markets in Africa)- Ghana’s central bank reduced its key interest rate for a third straight meeting as consumer prices rose at the slowest rate in four years and the currency strengthened. The Bank of Ghana cut the rate to 21 percent from 22.5 percent, Governor Ernest Addison told reporters Monday in Accra, the capital. That’s the lowest rate since early 2015. The median of nine economists’ estimates was for a cut to 21.5 percent. Bank surveys on…

Weak Naira, Inflation Leave Nigeria Little Room to Cut Rates

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – A weak naira and stubborn inflation may prevent Nigeria’s central bank from following South Africa and Ghana in cutting interest rates. Only two of 19 economists in a Bloomberg survey predicted the Monetary Policy Committee will reduce borrowing costs on Tuesday. The rest said the key rate will stay at a record high of 14 percent, where it’s been for a year. Governor Godwin Emefiele, who is scheduled to announce the…

Why Ghana Central Bank May Cut Key Interest Rate

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ACCRA (Capital Markets in Africa) – Ghana’s central bank may cut its key interest rate for a third straight meeting with inflation at its slowest in four years and a strengthening currency. Consumer-price growth has tumbled 7.1 percentage points since reaching an all-time high of 19.2 percent in March last year. While the cedi weakened to a record low against the dollar on March 2, it has strengthened 8.2 percent since then. The median of seven economists’ estimates…

South Africa Cuts Key Rate for the First Time in Five Years

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JOHANNESBURG (Capital Markets in Africa) – South Africa’s central bank cut borrowing costs for the first time in five years as inflation eases and after the country slipped into a recession. The Monetary Policy Committee reduced its key rate by 25 basis points to 6.75 per cent, Governor Lesetja Kganyago told reporters Thursday in the capital, Pretoria, citing concern about the nation’s growth outlook. Only three of 23 economists in a Bloomberg survey predicted a reduction. The cut is the…

Moroccan Banks Vulnerable to Economic Shocks Amidst Weak Capital Says Fitch Ratings

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CASABLANCA (Capital Markets in Africa) – Low capital buffers mean many Moroccan banks are susceptible to economic volatility, particularly in light of their weak asset quality and above-average risk appetite, Fitch Ratings says. Tangible common equity averages about 10% of tangible assets for the major Moroccan banks – a limited buffer given the banks’ risk profiles, single-obligor concentration risk and possible under-reporting of loan impairments. The Fitch Core Capital/weighted-risks ratios for rated banks averaged 12.6%…

South Africa Graft Ombudsman Won’t Fight Central Bank Court Bid

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JOHANNESBURG (Capital Markets in Africa) – South Africa’s anti-graft ombudsman won’t oppose the Reserve Bank’s court application to review and set aside her instruction to parliament to change the constitution and amend the central bank’s primary role. Public Protector Busisiwe Mkhwebane considered legal advice and decided not to oppose the application the central bank filed on June 28, her office said in an emailed statement on Monday. In a report last month, Mkhwebane instructed the legislature to start…

Barclays Kenya `Open Minded’ on Takeovers as Industry Wilts

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NAIROBI (Capital Markets in Africa) – Barclays Bank of Kenya Ltd. is ready to make acquisitions in East Africa’s largest economy as the industry struggles to cope with interest-rate caps that have cut profit and curbed lending and regulators urge the industry to consolidate. “Are we open to acquiring? Absolutely,” Chief Executive Officer Jeremy Awori said in an interview on Wednesday in Nairobi, the capital. “So you’ll either be looking to acquire capabilities you don’t have, which will…

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