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Monetary policymakers in hawkish mode, debt in focus

Central banks in South Africa, Kenya and Ghana all stepped up the pace of monetary tightening this week as concerns about inflation and currency weakness flared up. But we doubt that the rule of hawkish MPC members will prove long-lasting. Otherwise, the scale of China’s lending to frontier markets has been in the spotlight again. As we’ve long argued, this will prolong debt restructuring negotiations, making it more difficult for African economies like Ghana and Zambia to regain access to global capital markets.

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