South Africa Inflation at 10-Month High as Food Costs Surge

South Africa Inflation at 10-Month High as Food Costs Surge

JOHANNESBURG (Capital Markets in Africa) – South African consumer-price growth quickened in December as food costs surged, complicating the central bank’s task less than a week before it will decide on borrowing costs. Inflation accelerated to a 10-month high of 6.8 percent from 6.6 percent in November, Statistics South Africa said in a report released Wednesday in the capital, Pretoria. The median estimate of 24 economists surveyed by Bloomberg was for inflation of 6.5 percent. Prices rose 0.4 percent in…

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Moroccan Central Bank keeps benchmark interest rate unchanged at 2,25%

Moroccan Central Bank keeps benchmark interest rate unchanged at 2,25%

RABAT (Capital Markets in Africa) – Morocco’s central bank said on Tuesday economic growth would jump to 4.2 percent next year from an estimated 1.2 percent in 2016 on the back of sharply rising agricultural output. It made the bullish projections as it kept its benchmark interest rate unchanged at 2.25 percent. Abnormally dry weather across North Africa slashed the cereal harvest last season to 3.35 million tonnes, down 70 percent from the previous record…

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Botswana’s central bank keeps Bank rate unchanged at 5.5 percent

Botswana’s central bank keeps Bank rate unchanged at 5.5 percent

GABORONE (Capital Markets in Africa) – The Bank of Botswana Bank Rate was maintained at 5.5 percent at the Monetary Policy Committee (MPC) meeting held on December 13, 2016. This was in view of the positive outlook for price stability, with inflation forecast to be within the Bank’s 3 – 6 percent medium-term objective range. The Bank stated that the current state of the economy and both the domestic and external economic outlook, including the…

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Namibia’s central bank maintains repo rate at 7%, inflation lower

Namibia’s central bank maintains repo rate at 7%, inflation lower

Windhoek (Capital Markets in Africa) – Namibia’s central bank left its benchmark repurchase rate steady at 7.0 percent, saying economic growth is expected to improve in 2017 after a slowdown this year and expected inflation to lower in 2017.   The Bank of Namibia, which raised its rate twice this year by a total of 50 basis points, said inflation rose to an average of 6.6 percent in the first 10 months of this year, up…

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MPC Maintains Status Quo but Ignores Elephant in the Room …

MPC Maintains Status Quo but Ignores Elephant in the Room …

LAGOS (Capital Markets in Africa) – The Monetary Policy Committee (MPC) held its scheduled 6th and final meeting for 2016 on the 21st and 22nd of November. The conclusions from the two-day deliberations were broadly in consonance with our prognosis in the Pre-MPC note; “Blunted Policy Tools Call for Rollback of Administrative Measures” where we projected that the MPC will likely hold all rates constant whilst reinstate the need for the CBN’s hierarchy to properly…

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Central Bank of Kenya to hold rates at 10 pct on Nov 28

Central Bank of Kenya to hold rates at 10 pct on Nov 28

NAIROBI (Capital Markets in Africa) – Kenya is expected to keep interest rates stable on Nov. 28 ahead of an expected rate rise in the United States while cautiously dealing with the impact of new banking regulations, a Reuters poll found on Friday. The shock of trade-sceptic Donald Trump ascending to the top office of the world’s biggest economy has wrong-footed African countries, many of which have enjoyed beneficial trade agreements. A stronger dollar and higher…

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South Africa leaves key rate steady, warns of risks to inflation

South Africa leaves key rate steady, warns of risks to inflation

JOHANNESBURG (Capital Markets in Africa) – South Africa’s central bank kept its benchmark repo rate unchanged at 7 percent on Thursday in line with market consensus, but warned that risks to the inflationary outlook had increased. Delivering the last scheduled rate decision for the year, the central bank Governor Lesetja Kganyago said food price inflation was expected to moderate at a slower pace than what the bank had previously forecast. The bank has kept the benchmark…

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