Fed Suspense Grips Africa Central Banks in Final Policy Move
- South Africa, Kenya to decide on rates, Ghana tightened policy
- Possibility of further weakness in African currencies
This article is for subscribers only.
Central banks at three corners of Africa have a last chance in coming days to prepare their economies for any liftoff in U.S. interest rates as they grapple with policy already complicated by record-low currencies.
Ghana unexpectedly increased its benchmark interest rate and Mozambique raised its rate for a second consecutive month on Monday against a backdrop of heightened speculation that the Federal Reserve will lift borrowing costs for the first time in nine years in December. South Africa and Kenya will each set monetary policy this week, while in Nigeria, Africa’s largest economy, the central bank will hold its final meeting of the year next Tuesday.