Africa’s biggest economies likely to hold interest rates

Central banks in Africa’s biggest economies are expected to veer from their peers in Latin American and Europe, as they are expected to maintain tight monetary policies to combat persistent inflation, Bloomberg reported on Tuesday.

Egypt, South Africa, Morocco, Kenya, and Ghana are likely to hold their key interest rates, assessing inflation risks from domestic and global factors.

Nigeria’s decision is uncertain. Morocco’s rate is expected to remain steady at 3 per cent to safeguard its currency peg.

Ghana may maintain its 29 per cent policy rate due to a weakening cedi.

Nigeria’s 22.75 per cent rate may remain unchanged, stabilising the naira, though some anticipate a hike.

South Africa’s 8.25 per cent rate is likely to persist amid inflation concerns.

Egypt, with a 27.25 per cent deposit rate, may pause tightening after a recent biggest-ever hike.

Kenya may leave its 13 per cent central bank rate unchanged, given decreased inflation risks