(Bloomberg) — African central banks meeting in the next two weeks may decide that they’ve done all they can for now to shore up their economies against the havoc wrought by the coronavirus pandemic.
Most in the region will probably hold rates as inflation remains above target, while policymakers in Morocco will consider the risk of deflation. A recession in South Africa and muted price growth in Kenya make those nations outliers still considering rate cuts, although their room for maneuver is also narrowing.
While a pickup in activity “could embolden most MPC’s to stand pat,” an easing bias will persist in countries where policymakers aren’t convinced their economies are sufficiently recovering, said Jibran Qureishi, the Nairobi-based head of Africa research at Standard Bank Group Ltd. “We don’t see much scope for meaningful rate cuts from these levels.”
Here’s what central bankers on the continent may