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What African Central Banks May Do This Month With Interest Rates

  • MPCs in seven key economies to meet over next 10 days
  • Rising inflation to limit scope for interest rate reductions

Following aggressive interest rate cuts when coronavirus restrictions shut down output, African central bankers meeting for the final time this year may find that they’ve exhausted their monetary-policy options.

Activity has improved as economies reopen, yet balancing the threat of resurgent infections against inflation that’s on the rise means most policy makers in the region will probably hold rates as they seek to support economic growth. That’s as fiscal space remains limited and relatively depressed commodity prices continue to weigh on exporters.