Rates in SSA economies to stay on hold

25 November 2021 | Economics


Major Sub-Saharan African central banks will keep rates on hold this month as most emerging markets continue to lag the global recovery after the pandemic shock that disrupted economies across the continent, a Reuters poll found.

Benchmark interest rates for Ghana, Nigeria and Kenya will probably remain on hold at 13.50%, 11.50% and 7.00% respectively in the coming days. All three central banks have been on an easing cycle for around five years.

“With an altogether different growth trajectory in much of frontier SSA, there will be less pressure on central banks to tighten, just yet,” said Razia Khan, research head for Africa and Middle East economies at Standard Chartered.

A recent poll here suggested growth in sub-Saharan Africa's big economies would be mixed into 2022, after a year of recovery from Covid-19 lockdowns, as life slowly returns to normal amid low vaccination rates.

Virág Fórizs, emerging markets economist at Capital Economics, said policymakers would maintain their focus on supporting recoveries by keeping rates unchanged this month and beyond.

“In Ghana, the central bank cut rates earlier this year to give a boost to the economy and policymakers are unlikely to reverse course at this point. Meanwhile in Nigeria, the case to tighten monetary policy has weakened with inflation dropping back in recent months, especially so as the rebound in economic activity seems to be fading,” she added.


The International Monetary Fund last month confirmed its sub-Saharan Africa growth forecast of 3.7% for this year and 3.8% for 2022.

Last month the World Health Organization here said vaccination rates have not improved greatly on the continent, with only five African countries expected to meet a target of fully vaccinating 40% of their population against Covid-19 by the end of the year.

Nigeria is starting a mass vaccination campaign, aiming to inoculate half its targeted population by the end of January. Africa’s most populous country has a goal to vaccinate 111 million people to reach herd immunity.

South Africa's here central bank raised its main lending rate by 25 basis points to 3.75% in a close call on Thursday, the first-rate hike in three years in response to growing inflation risks.

The Central Bank of Kenya is expected to hold rates as inflation will probably drop towards the target midpoint in coming months without policy intervention. Its meeting is scheduled for the end of November. -Nampa/Reuters

Similar News


An inclusive informal economy crucial

14 hours ago | Economics

PHILLEPUS UUSIKUThe informal sector in Namibia, which is regarded at the backbone of the economy, lacks formal recognition in policies, is unregulated and suffers from...

Omicron variant could outcompete Delta

14 hours ago | Economics

ALEXANDER WINNINGThe Omicron coronavirus variant detected in southern Africa could be the most likely candidate to displace the highly contagious Delta variant, the director of...

Trustco wants to delist from NSX, JSE

19 hours ago | Economics

Jo-Maré Duddy - Trustco Group Holdings has requested its shareholders to participate in a non-binding advisory vote to, among others, delist from the Johannesburg Stock...

Investors spooked

1 day - 01 December 2021 | Economics

Jo-Maré Duddy – If government gets its way, the Investment Promotion and Facilitation Bill will become law this week, giving the trade minister sole power...

The recovery of the rental market flatlined

1 day - 01 December 2021 | Economics

PHILLEPUS UUSIKUAlthough rental markets across most advanced economies are on a path of recovery due to the resumption of “normal life”, improved pace of Covid-19...

SA's Covid-19 cases could triple this week

1 day - 01 December 2021 | Economics

ALEXANDER WINNING AND WENDELL ROELFSouth Africa's daily Covid-19 infection rate could triple to more than 10 000 by the end of this week as the...

Global jet fuel demand under pressure

1 day - 01 December 2021 | Economics

Global jet fuel markets stayed under pressure on Tuesday as more countries expanded border restrictions to keep the new Omicron coronavirus variant at bay, prompting...

Omicron raises new fears for world economy

1 day - 01 December 2021 | Economics

Delphine Touitou - Just as it was recovering from the body blow of the Covid-19 pandemic, the global economy has taken yet another hit from...

Ethiopia lifts suspension of collateralised loans

1 day - 01 December 2021 | Economics

Ethiopia’s central bank has lifted a suspension of lending by commercial banks to their customers using collateral such as property, the bank said on Monday.The...

China leader promises Africa 1 bln doses

1 day - 01 December 2021 | Economics

China's president pledged to offer Africa one billion Covid-19 vaccine doses on Monday, with the continent struggling to acquire enough jabs to immunise against the...

Latest News

10 apprehended in exam leak

14 hours ago | Education

ESTER KAMATI WINDHOEKAt least 10 individuals have been taken into custody by the Namibian Police after examination papers were leaked ahead of...

Man who cooked wife in...

14 hours ago | Justice

JANA-MARI SMITH WINDHOEKA hearing to decide whether former chef Thomas Adolf Florin (54) – the man who butchered and cooked the...

Game of musical chairs

14 hours ago | Politics

STAFF REPORTER WINDHOEKThe Popular Democratic Movement (PDM) and Affirmative Repositioning’s (AR) 11th-hour announcement yesterday...

Global airlines prepare for Omicron

14 hours ago | Business

JAMIE FREED AND RAJESH KUMAR SINGHAirlines are bracing for a fresh round of volatility due to the Omicron variant of Covid-19 that could force them...

Omicron variant could outcompete Delta

14 hours ago | Economics

ALEXANDER WINNINGThe Omicron coronavirus variant detected in southern Africa could be the most likely candidate to displace the highly contagious Delta variant, the director of...

EDITORIAL: We must fight together

14 hours ago | Opinion

Once again, the flimsy sense of control humans love to think they have over the world and their environment has been brought to a sharp...

Covid-19 undercuts HIV fight

14 hours ago | Health

JEMIMA BEUKES WINDHOEKThe latest World Aids Day report has cautioned that the curves...

SPYL welcomes public enterprise ministry’s...

14 hours ago | Politics

ESTER KAMATI WINDHOEKThe Swapo Party Youth League (SPYL), which convened in Grootfontein over...

Things to consider when buying...

14 hours ago | Agriculture

ELLANIE SMITWINDHOEKSeeds are an essential input resource that a farmer must procure to successfully grow crops.Agribank’s technical advisor for crops and poultry, Hanks Saisai, says...

Load More