The tightening cycles that began in Ghana and South Africa earlier this year continued in July and, in both cases, we think that further interest rate hikes are likely before the end of 2014. Ghana’s rate hike failed to stem the slide in the cedi, meaning that inflation is likely to continue soaring. Meanwhile, the South African Reserve Bank hinted that above-target inflation will result in further gradual tightening. Elsewhere, although the Central Bank of Kenya kept interest rates on hold this month, we expect policy to be tightened modestly this year as inflation looks set to breach target range in the near term.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services