Ghana’s central bank will probably keep its benchmark interest rate unchanged today to help support growth in the West African economy after tightening monetary policy at an emergency meeting two months ago.
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.
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.
Ghana’s central bank will probably increase interest rates for the first time in nine months tomorrow to curb depreciation of the currency, which has fueled inflation in the world’s second-largest cocoa producer.
Ghana’s budget deficit may be about 5 percent of gross domestic product this year as a growing economy helps contain rising debt, said Razia Khan, head of Africa economy research at Standard Chartered Plc.