Major Central Banks In Africa Aren’t Rushing to Raise Interest Rates
Central banks in some of Sub-Saharan Africa’s largest economies may be more worried about the effects of a possible third wave of coronavirus infections and a sluggish vaccine rollout than increasing inflation, so funding rates are likely to remain unchanged for the time being.
When monetary policy committees in Ghana, Nigeria, South Africa, Kenya, and Angola announce interest rate decisions in the next eight days, they are unlikely to imitate those in Brazil, Turkey, Mozambique, Zambia, and Zimbabwe.
Inflation in Nigeria and Angola, the continent’s two largest oil producers, is in double digits and growing, and the currencies are under pressure.
However, the risks to most economies in the region’s recovery after the region’s worst recession in half a century last year remain strong.