Ghana, Kenya, Nigeria to keep rates steady

VUYANI NDABACentral banks in Ghana and Kenya will keep interest rates on hold to check quickening inflation while foreign exchange reforms taking shape will leave Nigeria's central bank on the side-lines too, a Reuters poll found.Twelve analysts polled by Reuters were unanimous in saying interest rates would be left at 14.5% and 7.0% in Ghana and Kenya respectively. Just one of 10 said Nigerian rates would be lifted by 50 basis points to 12.0%.Razia Khan, head of research for Africa and Middle East at Standard Chartered, said the focus in Nigeria would be on reforms to the forex market and fuel subsidies.Nigeria, Africa's biggest economy has had multiple foreign currency exchange rates for the past few years which has undermined investment as businesses struggle with dollar shortages and investors hope the rates will converge soon.The problem was caused by a commodity price slump around 2014, though analysts say the situation is much better now as higher oil prices and the weaker naira will likely rebalance the current account.Revenue measuresStandard Chartered's Khan said in neighbouring Ghana the early rollouts of revenue measures, aimed at narrowing the fiscal deficit, including a higher value added tax rate and a fuel levy, would pressure inflation in the months ahead.In Kenya, the International Monetary Fund and Kenyan authorities reached an agreement on economic policies, concluding the first review of its 38-month extended fund facility and extended credit facility financed programme.Citi wrote that with a slow decline in the fiscal deficit and rising multilateral support the Central Bank of Kenya (CBK) should be under less pressure to tighten monetary policy in the medium term.However, a combination of rising oil prices and a quick re-bound in growth could mean inflationary pressures start to rise in the second half of 2021, which may push the CBK into modestly raising its policy rate this year.The poll suggested the three central banks were likely to keep rates at current levels for the rest of this year. In South Africa, a Reuters poll said borrowing costs there would be left at 3.5%. - Nampa/Reuters

Ghana, Kenya, Nigeria to keep rates steady

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Namibian Sun 2025-09-19

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Ghana, Kenya, Nigeria to keep rates steady

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Namibian Sun 2025-09-19

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