By Vuyani Ndaba

JOHANNESBURG -Sub-Saharan African Central Banks will maintain rates indefinitely this month, as emerging markets continue to lag after the devastating pandemic that decimated economies around the globe.

In the next few days, benchmark interest rates in Ghana, Nigeria, and Kenya are likely to remain at 13.50% 11, 50%, and 7.00%, respectively. Since around five years, all three central banks have been in an easing cycle.

Razia Khan (OTC), research chief for Africa and Middle East economics at Standard Chartered, stated that “with an entirely different growth trajectory across much of frontier SSA,” central banks will not be under any pressure to tighten just yet.

A recent poll https://www.reuters.com/business/sub-saharan-africa-see-mixed-economic-recovery-into-2022-2021-10-27 suggested growth in sub-Saharan Africa’s big economies would be mixed into 2022, after a year of recovery from COVID-19 lockdowns, as life slowly returns to normal amid low vaccination rates.

Virág Fórizs, emerging markets economist at Capital Economics, said policymakers would maintain their focus on supporting recoveries by keeping rates unchanged this month and beyond.

The central bank of Ghana cut interest rates in Ghana earlier this year, which gave an economic boost. Policymakers will not reverse this decision. In Nigeria, however, there is less support for tightening monetary policy. This was due to inflation falling back over recent months and an apparent slowdown in economic activity.

Last month, the International Monetary Fund confirmed that it had forecast sub-Saharan Africa’s growth of 3.7% this year and 3.8% in 2022.

Last month the World Health Organization https://www.reuters.com/world/africa/only-5-african-countries-may-fully-vaccinate-40-population-by-year-end-who-2021-10-28 said vaccination rates have not improved greatly on the continent, with only five African countries expected to meet a target of fully vaccinating 40% of their population against COVID-19 by the end of the year.

Nigeria will launch a mass vaccination drive, with the goal of inoculating half of its population before January ends. To achieve herd immunity, Africa’s largest country is aiming to inoculate 111 million people.

South Africa’s https://www.reuters.com/article/safrica-economy-rates/update-3-south-africa-raises-main-lending-rate-for-first-time-in-3-years-idUSL8N2S94VW central bank raised its main lending rate by 25 basis points to 3.75% in a close call on Thursday, the first rate hike in three years in response to growing inflation risks.

As inflation is likely to fall toward the midpoint of its target in the coming months, it will not be able to raise rates. The meeting will take place at the end November.