13 July 2018 ( Lagos ) :Monetary policies both in SSA and MENA regions also followed different patterns over 2018. For instance, inflationary pressure resurfaced in some part of MENA region which triggered tight monetary policies while growth concerns stirred accommodative policy in the Southern Africa parts. 

On other climes such as the West of Sahara, whilst inflation had moderated which should have ultimately prompted accommodative policies, authorities had dreaded pulling the trigger on the back of currency worries which could rekindle inflationary pressure. 

First off, in SSA, monetary policy committee in Nigeria7 and Angola8 left environment tight, irrespective of moderating inflation, with the committee of the former citing risk to currency as its justification. Meanwhile, against the backdrop of economic slowdown and lower inflation9, South Africa and Kenya’s central banks cut benchmark rates by 25bps to 6.5% and 50bps to 9.5% respectively.

In MENA region, with inflation touching its lowest level in 26 months, Central Bank of Egypt cut benchmark interest rate by 200bps to 16.75% between February and March – first time since currency floatation. 

For Saudi Arabia, in the wake of massive capital flight, Saudi Arabia policy committee raised benchmark repo rate by 25bps to 2.5% in its June meeting to stem the impact of outflows on currency. For morocco, even as inflationary pressure resurfaced, Bank-Al- Maghrib kept rate unchanged over the review period in effort to support economic growth.

Reporting for EasyKobo on Friday, 13 July 2018 in Lagos, Nigeria

Source: ARM Securities Limited

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