What are the African Central Banks doing: Keeps, Slashes or Hikes?

Angola’s central bank leaves benchmark lending rate unchanged at 16 pct
The National Bank of Angola (Banco Nacional de Angola, BNA) left its benchmark lending rate unchanged at 16 percent during its latest monetary policy meeting. The Central Bank has raised the Basic Interest Rate three times since the beginning of the year in an effort to combat spiraling inflation; the previous hike was at the monthly meeting in June. Inflation has been soaring due to the successive reductions in fuel subsidies and the weakness of the

Egypt’s central bank unexpectedly keeps rates unchanged
CAIRO (Reuters) – Egypt’s central bank kept its key interest rates unchanged at a monetary policy meeting, confounding a unanimous forecast by analysts that it would hike borrowing costs to curb inflation. The central bank instead kept its overnight deposit rate at 11.75 percent and its overnight lending rate at 12.75 percent.

Moroccan central bank keeps rates unchanged, sees 4 pct growth in 2017
Morocco’s central bank kept its benchmark interest rate unchanged at 2.25, saying the inflation forecast was consistent with its price stability objective. The bank, known as Bank al-Maghrib, said it expected inflation to remain around 1.6 percent in 2016 and fall to 1.2 percent in 2017. Expecting agricultural output to rebound in 2017 from the worst drought in decades to hit North Africa, the bank said growth would jump to 4 percent next year from an estimated 1.4 percent in 2016. It had previously expected the economy to grow by 1.2 percent in 2016

South Africa holds key rate, hints at end of tightening cycle
South Africa’s central bank kept interest rates unchanged at 7 percent for a third consecutive time this year, with a weak economic growth outlook balancing out concerns about inflation. The Reserve Bank said the growth outlook remained constrained, but revised upwards its forecast for this year to 0.4 percent growth having previously said the economy would remain at a standstill.

Nigeria central bank keeps benchmark interest rate, cash reserve ratio
 Nigeria’s central bank left its main lending rate unchanged as it weighed supporting the currency and fighting inflation while propping up an ailing economy. The Monetary Policy Committee held the benchmark rate at 14 percent, Governor Godwin Emefiele stated.  Loosening monetary policy now is not advisable as real interest rates are negative, pressure exists on the foreign-exchange market, while inflation is trending upwards, the Governor said. Borrowing at lower rates “will stimulate demand for goods without taking action to boost industrial production of goods. Too much money chasing too few goods will worsen the inflationary condition.”

Kenya central bank cuts main lending rate to 10 pct
Kenya’s central bank cut its benchmark lending rate by 50 basis points to 10 percent on Tuesday on concerns about sluggish credit growth, its Monetary Policy Committee (MPC) said. Demand pressures on inflation are moderate and inflation is expected to decline in the short term but the committee remains concerned about the persistent slowdown in private sector credit growth,” the MPC said in a statement.

Bank of Ghana holds rates; cuts signalled with inflation view
Ghana’s central bank kept its benchmark interest rate unchanged for a fifth consecutive meeting after inflation accelerated in August. The Bank of Ghana held the rate at 26 percent, Governor Abdul Nashiru Issahaku stated. Inflation expectations by businesses, consumers and the financial sector also eased on the back of continued stability in the local currency, according to the Governor. While price growth should slow to within target in the second quarter of next year “upside risks to the inflation outlook are the unanticipated shocks” like fuel and utility prices and their second-round effects, he said.

Rwandan central bank maintains its key repo rate at 6.5 percent
Rwanda’s central bank on maintained its key repo rate at 6.5 percent, the central bank governor said. Governor John Rwangombwa said average inflation this year was expected to be between 5.7 and 6 percent, while growth was still on track to hit the target of 6 percent.

Tunisia’s central bank holds key rate unchanged at 4.25 percent
Tunisia’s central bank kept its key interest rate unchanged at 4.25 percent. The bank last cut its main interest rate in October 2015, from 4.75 percent, in a bid to boost economic growth as inflation fell. The inflation rate was 4.9 percent in 2015, down from 5.5 percent in 2014.

Congo Central bank hikes interest rate in bid to contain inflation Democratic Republic of Congo’s central bank has raised the main interest rate from 2 to 7 percent in a bid to contain quickening inflation, the bank said, as low commodity prices continue to batter the economy of Africa’s top copper producer.