Ghana will sell more longer-term debt to reduce borrowing costs after Fitch Ratings cut the nation’s credit rating yesterday and warned of risks from the public-sector wage bill and rising debt levels.
Prospects for faster growth in Kenya are overshadowing concern that the nation’s worst attack in 15 years will undermine confidence in the economy as the benchmark stock index climbs the most in Africa and the shilling rallies.
Kenya should tighten monetary policy in order to stem the shilling’s decline to the weakest on record and curb inflation that may quicken to 22 percent “later this year,” according to Standard Chartered Bank Plc.
Ghana’s highest court will probably uphold President John Dramani Mahama’s election win, giving him the authority to rein in the budget deficit and manage the worst-performing West African currency this year, according to Eurasia Group.
Razia Khan, an economist at Standard Chartered Plc, forecast that South Africa’s central bank will cut its benchmark interest rate by half a percentage point to 6 percent when it next meets on July 22. She had previously forecast that rates would be left unchanged.
The African Development Bank is planning to raise as much as $1.5 billion in local-currency bonds in Nigeria and Zambia to finance infrastructure projects as emerging-market bond yields rise on speculation the Federal Reserve will reduce economic stimulus.
South African Finance Minister Pravin Gordhan may target wider fiscal deficits over the next three years that will test the government’s credibility in the face of credit rating downgrades and slowing growth.