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.
The peaceful election of Uhuru Kenyatta as Kenya’s president boosted the shilling, stocks and bonds as investors shrugged off his impending trial at the International Criminal Court and a legal challenge to his win.
Ghana will narrow its budget deficit this year by reducing fuel subsidies and earning more taxes from oil companies as crude production in the West African nation increases, Finance Minister Seth Terkper said.
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.
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.