Namibia Cuts Rate for First Time in 5 Years as Inflation Slows

Namibia Cuts Rate for First Time in 5 Years as Inflation Slows

WINDHOEK (Capital Markets in Africa) – Namibia’s central bank reduced its key rate for the first time since 2012 as consumer prices rose at the slowest pace in almost two years last month and the economy contracts. The Monetary Policy Committee reduced the repo rate by 25 basis points to 6.75 percent, Bank of Namibia Deputy Governor Ebson Uanguta told reportersWednesday in capital, Windhoek. Inflation in the southwest African nation, the world’s biggest producer of marine diamonds, was 5.4…

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

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

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…

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Kenya central bank keeps benchmark rate at 10 percent

Kenya central bank keeps benchmark rate at 10 percent

NAIROBI (Capital Markets in Africa) – Kenya’s central bank kept its benchmark lending rate at 10.0 percent on Monday, the bank’s monetary policy committee said, a bid to reduce the threat of demand-driven inflation. Analysts polled by Reuters had predicted rates wouldn’t change. The government, which faces parliamentary, presidential and local elections in August, is struggling to contain high inflation, caused mostly by higher food prices. Kenya’s inflation rose to an annual 11.48 percent in…

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In surprise move, Egypt central bank hikes key interest rates

In surprise move, Egypt central bank hikes key interest rates

CAIRO (Capital Markets in Africa) – Egypt’s central bank raised its key interest rates by 200 basis points on Sunday, confounding the expectations of economists who saw rates unlikely to change, but in line with recent IMF statements. At a meeting of its Monetary Policy Committee, the bank hiked its overnight deposit rate to 16.75 percent from 14.75 percent and its overnight lending rate to 17.75 from 15.75 percent, it announced in a statement. This…

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South Africa Central Bank Signals End of Rate-Increase Cycle

South Africa Central Bank Signals End of Rate-Increase Cycle

JOHANNESBURG (Capital Markets in Africa) – The South African Reserve Bank held its benchmark rate unchanged for a sixth straight meeting and said it may have reached the end of its policy-tightening cycle, even as the rand remains a risk to inflation. Five of the six Monetary Policy Committee members voted to keep the repurchase rate at 7 percent, and one favoured a 25 basis-point cut, Governor Lesetja Kganyago told reporters Thursday in the capital, Pretoria. The decision…

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Reserve Bank of Malawi slashes policy rate to 22 percent

Reserve Bank of Malawi slashes policy rate to 22 percent

LILONGWE (Capital Markets in Africa) – The Monetary Policy Committee (MPC) of the Reserve Bank of Malawi on Friday 24th March 2017, agreed to cut the indicative cost of money, technically known as the policy rate, by 200 basis points from 24 percent to 22 percent, a development buoyed by a sharp fall in inflation. It is the second time in five months that the monetary authorities have slashed the policy rate following a 300…

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