South African Reserve Bank governor Lesetja Kganyago.  Photo Reuters
South African Reserve Bank governor Lesetja Kganyago. Photo Reuters

SARB expected to hike rates again

Monique Vanek
Central banks in Africa’s biggest economies are poised to raise interest rates this month to contain sticky inflation and deter a selloff in their assets exacerbated by the collapse of US lender Silicon Valley Bank and stress at Credit Suisse.

South Africa, along with Nigeria, Egypt, Morocco and Kenya are projected to raise borrowing costs in the next two weeks. Monetary authorities in nations such as Ghana and Angola, where inflation is on a downswing are predicted to hold.

The South African Reserve Bank’s (SARB's) fight against inflation is however unlikely to be derailed by weakness in the global banking system.

Policymakers nearing the end of the interest-rate hiking cycle, will probably raise the benchmark by 25 basis points to address potential risks to the inflation outlook, said Sanisha Packirisamy, an economist at Momentum Investments. They include the knock on effects of a weaker currency, with the rand having weakened about 7% against the dollar this year.

Average inflation expectations for the year stand at 6.3%, well above the central bank’s 4.5% target.

While traders have pared bets for a quarter-point increase, that’s largely in line with expectations of less tightening by the Fed after the collapse of SVB. South Africa’s Monetary Policy Committee (MPC) may take direction from the European Central Bank (ECB), which delivered a 50 basis-point hike last week. The ECB "made a loud statement to markets to suggest that fighting inflation is their top priority but they stand ready to support the financial sector if needed through financial stability tools," Packirisamy said.-Fin24

Kommentar

Allgemeine Zeitung 2024-06-23

Zu diesem Artikel wurden keine Kommentare hinterlassen

Bitte melden Sie sich an, um einen Kommentar zu hinterlassen

Katima Mulilo: 10° | 28° Rundu: 11° | 27° Eenhana: 12° | 29° Oshakati: 12° | 29° Ruacana: 12° | 29° Tsumeb: 13° | 25° Otjiwarongo: 10° | 24° Omaruru: 12° | 26° Windhoek: 9° | 23° Gobabis: 9° | 23° Henties Bay: 16° | 32° Wind speed: 39km/h, Wind direction: E, Low tide: 10:10, High tide: 04:07, Low Tide: 22:33, High tide: 16:42 Swakopmund: 17° | 24° Wind speed: 23km/h, Wind direction: S, Low tide: 10:08, High tide: 04:05, Low Tide: 22:31, High tide: 16:40 Walvis Bay: 20° | 31° Wind speed: 26km/h, Wind direction: SE, Low tide: 10:08, High tide: 04:04, Low Tide: 22:31, High tide: 16:39 Rehoboth: 9° | 24° Mariental: 11° | 25° Keetmanshoop: 13° | 25° Aranos: 11° | 25° Lüderitz: 17° | 27° Ariamsvlei: 13° | 26° Oranjemund: 13° | 23° Luanda: 20° | 22° Gaborone: 9° | 22° Lubumbashi: 11° | 27° Mbabane: 11° | 17° Maseru: 6° | 18° Antananarivo: 8° | 19° Lilongwe: 13° | 26° Maputo: 18° | 24° Windhoek: 9° | 23° Cape Town: 13° | 20° Durban: 15° | 22° Johannesburg: 9° | 18° Dar es Salaam: 21° | 30° Lusaka: 13° | 23° Harare: 11° | 23° Currency: GBP to NAD 22.68 | EUR to NAD 19.2 | CNY to NAD 2.47 | USD to NAD 17.96 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.28 | EGP to NAD 0.37 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.69 | ZWL to NAD 0.04 | BRL to NAD 3.28 | RUB to NAD 0.2 | INR to NAD 0.21 | USD to DZD 134.42 | USD to AOA 852.48 | USD to BWP 13.51 | USD to EGP 47.65 | USD to KES 127.73 | USD to NGN 1482.3 | USD to ZAR 17.96 | USD to ZMW 25.45 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1783.38 Down -0.16% | Casablanca Stock Exchange (CSE) MASI 13140.91 Up +0.02% | Egyptian Exchange (EGX) 30 Index 26417.6 Up +1.09% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 321.88/OZ DOWN -0.0165 | Copper US$ 4.42/lb DOWN -0.0251 | Zinc US$ 2 875.00/T UP 0.09% | Brent Crude Oil US$ 85.10/BBP DOWN -0.0072 | Platinum US$ 990.14/OZ UP +0.92% Sport results: Weather: Katima Mulilo: 10° | 28° Rundu: 11° | 27° Eenhana: 12° | 29° Oshakati: 12° | 29° Ruacana: 12° | 29° Tsumeb: 13° | 25° Otjiwarongo: 10° | 24° Omaruru: 12° | 26° Windhoek: 9° | 23° Gobabis: 9° | 23° Henties Bay: 16° | 32° Wind speed: 39km/h, Wind direction: E, Low tide: 10:10, High tide: 04:07, Low Tide: 22:33, High tide: 16:42 Swakopmund: 17° | 24° Wind speed: 23km/h, Wind direction: S, Low tide: 10:08, High tide: 04:05, Low Tide: 22:31, High tide: 16:40 Walvis Bay: 20° | 31° Wind speed: 26km/h, Wind direction: SE, Low tide: 10:08, High tide: 04:04, Low Tide: 22:31, High tide: 16:39 Rehoboth: 9° | 24° Mariental: 11° | 25° Keetmanshoop: 13° | 25° Aranos: 11° | 25° Lüderitz: 17° | 27° Ariamsvlei: 13° | 26° Oranjemund: 13° | 23° Luanda: 20° | 22° Gaborone: 9° | 22° Lubumbashi: 11° | 27° Mbabane: 11° | 17° Maseru: 6° | 18° Antananarivo: 8° | 19° Lilongwe: 13° | 26° Maputo: 18° | 24° Windhoek: 9° | 23° Cape Town: 13° | 20° Durban: 15° | 22° Johannesburg: 9° | 18° Dar es Salaam: 21° | 30° Lusaka: 13° | 23° Harare: 11° | 23° Economic Indicators: Currency: GBP to NAD 22.68 | EUR to NAD 19.2 | CNY to NAD 2.47 | USD to NAD 17.96 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.28 | EGP to NAD 0.37 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.69 | ZWL to NAD 0.04 | BRL to NAD 3.28 | RUB to NAD 0.2 | INR to NAD 0.21 | USD to DZD 134.42 | USD to AOA 852.48 | USD to BWP 13.51 | USD to EGP 47.65 | USD to KES 127.73 | USD to NGN 1482.3 | USD to ZAR 17.96 | USD to ZMW 25.45 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1783.38 Down -0.16% | Casablanca Stock Exchange (CSE) MASI 13140.91 Up +0.02% | Egyptian Exchange (EGX) 30 Index 26417.6 Up +1.09% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 321.88/OZ DOWN -0.0165 | Copper US$ 4.42/lb DOWN -0.0251 | Zinc US$ 2 875.00/T UP 0.09% | Brent Crude Oil US$ 85.10/BBP DOWN -0.0072 | Platinum US$ 990.14/OZ UP +0.92%