SA and Nigeria likely to hold rates steady on weak growth and high inflation
Central banks of Africa’s two largest economies are unlikely to increase borrowing costs as they battle above-target inflation and poor economic performance
Abuja/Johannesburg — The central banks of Africa’s two largest economies will probably leave borrowing costs unchanged on Tuesday after Nigeria’s economy probably contracted in 2016 and SA looks set to have had the slowest growth since 2009. The South African Reserve Bank, led by governor Lesetja Kganyago, may leave the benchmark repurchase rate at 7% for a fifth consecutive meeting, according to all 20 economists surveyed by Bloomberg. All 16 economists in a separate Bloomberg survey said the monetary policy committee at the Central Bank of Nigeria, headed by governor Godwin Emefiele, would leave rates at a record of 14% for a third consecutive meeting when it announced its decision. Setting interest rates in both nations was complicated for most of 2016 by above-target inflation and poor economic performance. Low metal prices, weak global demand and a drought probably cut expansion in SA to the lowest since a 2009 recession, according to government estimates. The Nigerian economy ...
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