Similarly, Mozambique, Kenya, Ghana and Eswatini\u2019s monetary policy committees are set to reduce their key interest rates. That\u2019s as their inflation rates are forecast to fall because their currencies are either relatively stable or have appreciated against the dollar, as well as due to a recent drop in Brent crude prices.\u00a0<\/p>\n\n\n\n The central bankers will also take comfort in expectations that the Federal Reserve will cut US interest rates on Wednesday and may continue to ease policy. Such a move would prevent the interest-rate differentials between the US and African economies from narrowing too much, which would make some of the continent\u2019s currencies less attractive to investors.<\/p>\n\n\n\n With Moroccan inflation still on track to average the Bank al Maghrib\u2019s 1.5% target for the year, its council is also likely to be among those lowering rates. While inflation may quicken from its current rock-bottom levels going into 2025, mainly due to base effects, the central bank may implement three further 25-basis point cuts over the coming year, barring an unexpected uptick in price growth, said Mark Bohlund, a senior credit research analyst at REDD Intelligence. It surprised with a quarter-point cut to 2.75% in June.<\/p>\n\n\n\n Emerging Inflation Risks<\/strong><\/p>\n\n\n\n Nigeria\u2019s policymakers on Sept. 24 will likely pause a tightening cycle that\u2019s lifted the key rate to 26.75% from 11.5% in just over two years. <\/p>\n\n\n\n They\u2019ll be emboldened by inflation cooling to a\u00a0six-month low<\/a>\u00a0in August as they weigh the effects of\u00a0floods<\/a>\u00a0in the north-east of the country and a 45% increase in gasoline costs on prices. <\/p>\n\n\n\n Like Nigeria, Angola\u2019s MPC will also want to assess what the drop in oil prices may mean for its currency and will probably opt to maintain its policy benchmark even as data suggests its inflation rate peaked in July. Oil makes up the bulk of both governments\u2019 income. \u00a0 \u00a0<\/p>\n\n\n\n \u201cWith inflation expectations still somewhat elevated in Angola and Nigeria,\u201d they\u2019ll probably leave rates unchanged over the next couple of months, Qureshi said.<\/p>\n\n\n\n Tanzania\u2019s central bank is also expected to hold rates because of the inflationary impact of ongoing currency weakness. The shilling has depreciated almost 4% against the dollar since June due to greenback shortages.<\/p>\n\n\n\n Lesotho\u2019s MPC generally follows South Africa\u2019s because its currency is pegged to the rand, but it\u2019s unlikely to do so this time. <\/p>\n\n\n\n That\u2019s as inflation at 6.7% is expected to remain elevated and its key rate is already 50-basis points lower than its neighbor\u2019s, said Lyle Begbie, an economist at Oxford Economics Africa. \u201cIt will likely only cut in November,\u201d he said.<\/p>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/09\/image-51.png\")
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