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Fed Grants African Central Banks Reprieve to Pause on Rates

  • Ghana, Kenya and Nigeria seen keeping interest rates unchanged
  • More stable currencies and commodity recovery support pause
Updated on

Central banks in west and east Africa may have room to hold off on raising interest rates this week as the U.S. Federal Reserve scaled back expectations for tighter policy, buoying emerging-market currencies.

Ghana, Kenya and Nigeria are set to announce interest-rate decisions after taking divergent policy options in 2015. While Ghana and Kenya raised interest rates to curb currency weakness and accelerating inflation, Africa’s largest economy opted to cut borrowing costs to support growth. This week all three will probably hold, according to analysts surveyed by Bloomberg.