logo
Central banks of Ghana and Kenya to pause rates in coming days until May: Reuters poll

Central banks of Ghana and Kenya to pause rates in coming days until May: Reuters poll

Reuters27-03-2025
JOHANNESBURG, March 27 (Reuters) - The Bank of Ghana and the Central Bank of Kenya will pause cutting interest rates at their upcoming meetings and resume in May, a Reuters poll found on Thursday, as inflation challenges in the region suggest a cautionary stance for policymakers.
While central banks in countries directly in the firing line of U.S. President Donald Trump's import tariffs pause or end cutting cycles, some in Africa are expected to cut between 125-400 basis points (bps) this year.
The Bank of Ghana (BOG) has cut rates by 300 bps since last year and the survey suggested rates would be cut 100 bps to 26.00% in May with another cut of 125 bps to 24.75% in the third quarter. The key rate was seen ending the year at 23.00%.
All but one of 10 analysts surveyed between March 20 and 26 expected the BOG to keep rates steady at its monetary policy meeting on Monday.
"In Ghana, we believe that inflation hovering well above target and recent FX weakness will lead the BOG to hold rates at 27.00%," wrote Kevin Daly, managing director and senior economist at Goldman Sachs.
"That said, given the BOG's history of premature monetary easing, the possibility of a cut cannot be completely ruled out."
The case for pausing is similar in Kenya, where all but one analyst expect Kenya's central bank to keep the benchmark rate on hold at 10.75%. The meeting in Nairobi is due on April 8.
Inflation in Kenya rose for a fourth month in a row in February, reaching 3.5%.
A 75 bps cut to 10.00% in May is expected, followed by a 50 bps cut in the third quarter that will see rates end the year at 9.50%. The Central Bank of Kenya has cut rates by 200 bps since August.
"Disinflation in coming months will motivate rate cuts in Kenya and Ghana," Rafiq Raji, non-resident senior associate with the Africa programme at the Center for Strategic and International Studies in Washington D.C..
The Central Bank of Nigeria (CBN) is expected to keep rates unchanged at its meeting due next month through to end-June before cutting 150 bps to 26.00% in the third quarter and by 100 basis points to 25.00% in November.
Since the start of last year the CBN has hiked rates by 475 bps. Inflation there eased to 23.18% in February from 31.70% from a year earlier, a month after it rebased its Consumer Price Index to reflect changes in consumption patterns.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Google partners with Italy's Energy Dome on zero-emission power supply
Google partners with Italy's Energy Dome on zero-emission power supply

Reuters

time22 minutes ago

  • Reuters

Google partners with Italy's Energy Dome on zero-emission power supply

MILAN, July 25 (Reuters) - Italian energy storage firm Energy Dome said on Friday it had entered a commercial partnership with Google (GOOGL.O), opens new tab to supply carbon-free energy to the grids that power the operations of the U.S. tech giant. As part of the agreement, Google has made a strategic investment in Milan-based Energy Dome, which has developed a CO2 battery technology to support the energy transition through long-duration energy storage solutions, the companies said in a joint statement. They did not disclose the financial details. Google joins other investors in the Italian energy storage firm such as Oman's sovereign wealth fund and global tank storage operator Vopak ( opens new tab. Google's first commercial long-duration energy storage deal is part of a growing number of advanced energy technologies the group needs to hit a goal to run its operations on 24/7 carbon-free energy by 2030. Energy Dome's CO2-based system stores energy by compressing and liquefying carbon dioxide, which is later expanded to generate electricity. The technology avoids the use of scarce raw materials such as lithium and copper, making it potentially attractive to European policymakers seeking to reduce reliance on critical minerals and bolster energy security. Energy Dome launched its first commercial-scale plant in Sardinia in 2022 with a view to completing it by the end of 2024, with a 24-hour cycle and a 20-megawatt capacity able to power 13,000-15,000 houses.

EU regulator does not recommend approval of Sarepta's muscle disorder gene therapy
EU regulator does not recommend approval of Sarepta's muscle disorder gene therapy

Reuters

time22 minutes ago

  • Reuters

EU regulator does not recommend approval of Sarepta's muscle disorder gene therapy

July 25 (Reuters) - Europe's medicines regulator did not recommend the approval of Sarepta Therapeutics' (SRPT.O), opens new tab gene therapy Elevidys for a type of rare muscular dystrophy, the health agency said on Friday. Shares of the company were down nearly 17% at $10.70 in premarket trading. The EU committee's negative opinion comes as yet another setback for the company that is facing increasing regulatory scrutiny after two recent deaths of patients who received Elevidys. Sarepta and its partner outside the U.S., Roche (ROG.S), opens new tab, did not immediately respond to Reuters' requests for comment.

NewPrinces open to further acquisitions after Carrefour's Italian business
NewPrinces open to further acquisitions after Carrefour's Italian business

Reuters

time22 minutes ago

  • Reuters

NewPrinces open to further acquisitions after Carrefour's Italian business

MILANO, July 25 (Reuters) - Italian food and beverage manufacturer Newprinces ( opens new tab said on Friday it would consider other acquisitions, if the opportunity arises, after buying Carrefour's ( opens new tab loss-making business in Italy. "The M&A market is not something that you can control... If we find an interesting opportunity we will try to get it", NewPrinces finance Fabio Fazzari said in a conference call. The Carrefour Italia deal won't change NewPrinces plans for a potential public listing of its manufacturing unit on the London bourse, since the new assets will be put under a different division, Fazzari added. NewPrinces said on Thursday evening that it clinched an agreement to buy Carrefour Italia, the Italian unit of Europe's biggest food retailer, for an equity value of 1 euro ($1.17). Under the deal, which also includes 420 million euros of real estate assets according to a slide presentation during the conference call, the enterprise value has been set at 1 billion euros. NewPrinces shares were down 11.5% on the Milan stock exchange, hit by worries about the group's leverage after the recent acquisitions, according to a trader. NewPrinces agreed this month to buy Kraft Heinz (KHC.O), opens new tab's Italian infant and speciality businesses, including the Plasmon, Nipiol and Aproten brands, and in June signed a deal to purchase Diageo's (DGE.L), opens new tab operations in Italy. ($1 = 0.8527 euros)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store