Ghana Cuts Interest Rate to 4-Year Low as Inflation Slows

Ghana Cuts Interest Rate to 4-Year Low as Inflation Slows

ACCRA (Capital Markets in Africa) – Ghana cut its benchmark interest rate to the lowest in more than four years as the inflation rate fell within the regulator’s target band for the first time since 2013. The Bank of Ghana reduced the rate by 100 basis points to 17 percent, Governor Ernest Addison told reporters Monday in the capital, Accra. Lower borrowing costs may boost expansion in one of Africa’s fastest-growing economies. Inflation at 9.6 percent in April was…

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Angola Raises Key Rate to Record-High 18% on Inflation Concerns

Angola Raises Key Rate to Record-High 18% on Inflation Concerns

LUANDA (Capital Markets in Africa) – Angola’s central bank raised its benchmark interest rate to a record 18 percent as it seeks to counter inflation and support the kwanza. The key rate was increased from 16 percent, Luanda-based Banco Nacional de Angola said on Thursday after a meeting of the monetary policy committee. “The bank paid particular attention to the evolution of prices in the economy, having observed an acceleration in inflation,” the MPC said in a…

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Ghana Cuts Key Rate to Three-Year Low as Inflation Slows

Ghana Cuts Key Rate to Three-Year Low as Inflation Slows

  ACCRA (Capital Markets in Africa) – Ghana cut its benchmark interest rate to the lowest in more than three years as inflation slows toward the central bank’s target. The Bank of Ghana reduced the rate to 20 percent, Governor Ernest Addison, told reporters in the capital, Accra, on Monday. Of the eight economist surveyed by Bloomberg, four forecast the move. Ghana will meet the inflation target of 6 percent to 10 percent “at worst” by the second quarter of…

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Carney’s Countdown to BOE Rate Hike Faces Make or Break Week

Carney’s Countdown to BOE Rate Hike Faces Make or Break Week

LAGOS (Capital Markets in Africa) – Mark Carney is heading into a crucial week in the countdown to a possible Bank of England rate increase in early November. After the International Monetary Fund meetings where most central bankers fretted about weak inflation even amid robust global growth, the governor returns to an economy that’s almost the mirror opposite. While Brexit is weighing on U.K. businesses, price growth is above target — something for lawmakers to press him on…

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Ghana Bank Holds Key Rate at 2015 Low as Inflation Quickens

Ghana Bank Holds Key Rate at 2015 Low as Inflation Quickens

ACCRA (Capital Markets in Africa) – Ghana’s central bank kept its key lending rate at the lowest since 2015 after inflation accelerated for the first time in four months. The Bank of Ghana left the rate at 21 percent, Governor Ernest Addison told reporters Monday in the capital, Accra. Two of seven economists in a Bloomberg survey predicted the hold, while the rest forecast cuts ranging from 50 to 100 basis points. The central bank of West Africa’s biggest…

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Record-High Nigeria Rate Seen Held on Inflation, Naira Woes

Record-High Nigeria Rate Seen Held on Inflation, Naira Woes

LAGOS (Capital Markets in Africa) – Now that Nigeria’s economy is recovering from its worst slump in 25 years, the central bank can turn its focus to fighting inflation again — and shoring up its currency. The Monetary Policy Committee has kept its interest rate at a record-high 14 percent since July 2016, trying to support the economy, and will probably hold it there at its decision this week to contain above-target consumer-price growth. Officials can take heart…

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The Reason Why South Africa’s Central Bank May Cut Again This Week

The Reason Why South Africa’s Central Bank May Cut Again This Week

JOHANNESBURG (Capital Markets in Africa) – If South Africa’s central bank cuts interest rates again this week, just don’t accuse it of doing so for the sake of “socioeconomic well-being.” The institution has been fighting off a bid by the nation’s anti-graft ombudsman to change its mandate away from targeting inflation to focusing on the financial health and quality of life of its citizens. But officials might be about to deliver their second rate reduction this…

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