Egypt Interrupts Rate Cuts as Inflation, Unrest Give Pause

Egypt Interrupts Rate Cuts as Inflation, Unrest Give Pause

CAIRO (Capital Markets in Africa) – Egypt unexpectedly refrained from another cut in interest rates on Thursday after inflation ticked up in December and as unrest jolted other parts of the Middle East, from Iran to Libya. After three rounds of easing since August, the Monetary Policy Committee left the deposit rate at 12.25% and the lending rate at 13.25%, according to a statement Thursday. All but three of 19 economists surveyed by Bloomberg had predicted a…

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South Africa Cuts Rates to 4-Year Low Even With Moody’s Lurking

South Africa Cuts Rates to 4-Year Low Even With Moody’s Lurking

JOHANNESBURG Capital Markets in Africa): Reserve Bank unexpectedly cut its benchmark interest rate to the lowest level in four years after slashing forecasts for inflation and economic growth. The Monetary Policy Committee unanimously voted to lower the repurchase rate to 6.25% from 6.5%, Governor Lesetja Kganyago told reporters Thursday in the capital, Pretoria. Of the 19 economists surveyed by Bloomberg, only three predicted the move, although forward-rate agreements showed the market foresaw an even-chance of a cut….

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South Africa Consumer Confidence Remains Stuck at Two-Year Low

South Africa Consumer Confidence Remains Stuck at Two-Year Low

JOHANNESBURG (Capital Markets in Africa) – South African consumer confidence remained trapped at a two-year low and economic prospects are expected to worsen. The consumer-confidence index stayed at -7 in the fourth quarter, FirstRand Ltd.’s First National Bank said in an emailed statement on Tuesday. That’s still the lowest level since the final three months of 2017 and well off the record high of 26 when Cyril Ramaphosa took over as president two years ago. Business confidence in Africa’s…

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World Bank Cuts South Africa GDP Forecast on Eskom Fears

World Bank Cuts South Africa GDP Forecast on Eskom Fears

LAGOS (Capital Markets in Africa) – The World Bank is the first key institution to cut its economic growth forecast for South Africa to below 1% for 2020 due to electricity supply concerns. It now expects the economy to expand by 0.9% this year, the Washington-based lender said Wednesday in its Global Economic Prospects report. That compares with an estimate of 1% in its Africa Pulse report released in October and is well below government forecasts. Its outlook for Africa’s most-industrialized…

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World Bank Disagrees With Ethiopia on 2020 Double-Digit Growth

World Bank Disagrees With Ethiopia on 2020 Double-Digit Growth

ADDIS ABABA (Capital Markets in Africa) – The World Bank cut its forecast for Ethiopia’s economic growth in the 2020 fiscal year to 6.3%, well below the government’s projection. The National Bank of Ethiopia has forecast that gross domestic product growth would accelerate to 10.8% for the fiscal year ending in July, up from a 9% pace in fiscal 2019 as the government implements a blueprint expected to boost investment. Economic reforms by Prime Minister Abiy…

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INFLATION: South Africa, Ghana, Tanzania, Rwanda, Ethiopia

INFLATION: South Africa, Ghana, Tanzania, Rwanda, Ethiopia

LAGOS (Capital Markets in Africa) – Ghana’s inflation rate rose to the highest level in four months in November as the cedi continued to weaken. Annual inflation quickened to 8.2% in from 7.7% in October, Government Statistician Samuel Kobina Annim told reporters in the capital, Accra, on Wednesday. The median estimate of three economists in a Bloomberg survey was 7.6%. Prices rose 0.7% in the month. Key Insights This is the first time since the…

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Egypt Inflation Edges Up But Leaves Breathing Room for Rates

Egypt Inflation Edges Up But Leaves Breathing Room for Rates

CAIRO (Capital Markets in Africa) – Egypt’s inflation rate accelerated for the first time in five months, rising 3.6% in November as the effect of last year’s surge in prices faded but offering the central bank little reason to reverse a monetary easing cycle. The annual rate for urban inflation rose from 3.1% the month before, the state-run statistics bureau said Tuesday. Consumer prices fell 0.3% month-on-month from a 1% rise in October — its…

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