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.
EM Drop-In (6th Apr.): Our latest EM online briefing is all about the risks around the recent bank turmoil, including potential economic spill-overs and the state of EM bank balance sheets. Register now.
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