By Vuyani Ndaba

JOHANNESBURG – Sub-Saharan African central bank will maintain rates indefinitely this month, as emerging markets continue to lag after the devastating pandemic that decimated economies around the world.

The benchmark rates of interest for Ghana, Nigeria, Kenya and Nigeria will likely remain unchanged at 13.50% 11.50%, 7.00% and 7.00% in the coming days. 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.

Ghana’s central bank had already cut rates this year in an effort to boost the economy. Policymakers won’t be able to change this decision. She said that Nigeria’s case for tightening the monetary policies has declined with the inflation rate dropping in recent months.

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 has launched a mass vaccination campaign to reach half of its target population. It aims to do so by January 31st. The goal of Africa’s biggest country to immunize 111 millions people is to achieve herd immunity.

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 without intervention by policy, the Central Bank of Kenya will keep rates at their current levels. The meeting will take place at the end November.