Banking

JOHANNESBURG (Capiatla Markets in Africa) – As the South African Reserve Bank’s shareholders prepared for its annual general meeting on Friday, Governor Lesetja Kganyago derided the debate over who owns the institution as a distraction from the real problems that the economy faces. This AGM was the second since the ruling African National Congress decided in December 2017 that the central bank, which is one of a handful worldwide owned by private investors, should be…

LAGOS (Capiatla Markets in Africa) – Nigeria’s central bank introduced measures last year to encourage commercial banks to lend more, part of a bid to revive one of Africa’s biggest economies. Credit growth, however, has stagnated, despite the new rules enabling lenders to deploy funds previously earmarked as reserves. Now, central bank Governor Godwin Emefiele is taking a more aggressive approach, penalizing banks that are deemed too risk-averse. Why is the central bank doing this? Nigeria’s economy contracted…

LONDON (Capiatla Markets in Africa) – One contender to be Bank of England governor recently tipped by bookmakers could augur a rather different way of thinking at the institution. Pro-Brexit economist Gerard Lyons became the frontrunner this week, according to Betway, in tandem with the appointment as prime minister of his former boss, Boris Johnson. The new premier has just populated his cabinet with allies, and punters may now be betting he could repeat that with the leadership of the…

LONDON (Capiatla Markets in Africa) – The job of Bank of England governor could be considered a “poisoned chalice” by some possible candidates and finding a pro-Brexit economist to fill the role could be a challenge, according to former policy maker Martin Weale. “If following the appointment of the Cabinet, the chancellor wants someone who believes that Brexit is going to be wonderful, my guess is that’s going to give him a fairly short shortlist,” Weale,…

LAGOS (Capital Markets in Africa) – Struggling to hit their targets for inflation, central banks around the world are debating whether they need to alter what they’re aiming for. From the Federal Reserve to the European Central Bank, officials are studying their current strategies and whether they need to be changed to revive inflation as it keeps undershooting the levels deemed to represent price stability. Here’s a rundown of what some central banks are talking about: Federal Reserve…

NAIROBI (Capital Markets in Africa) – Kenya’s central bank kept its benchmark interest rate unchanged for a sixth consecutive time, saying inflation expectations remain well-anchored. The Monetary Policy Committee held the rate at 9%, Governor Patrick Njorogesaid Wednesday in a statement in the first rates decision since his reappointment for a second term. That was in line with the forecast of all six economists in a Bloomberg survey. Key Insights: The unchanged stance comes even as…

LAGOS (Capital Markets in Africa) – Nigeria’s central bank kept its benchmark interest rate on hold to battle persistently high inflation even as it seeks to boost lending to grow the economy. The Monetary Policy Committee unanimously decided to hold the rate at 13.5%, Governor Godwin Emefiele told reporters Tuesday in the capital, Abuja. All but one of the six economists in a Bloomberg survey forecast the unchanged stance and one predicted a 50 basis-point cut. Key…