Monetary Policy
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CBN orders all POS machines in Nigeria to be geo-tagged within 60 days, ending roaming agents while adopting ISO 20022 to curb fraud and boost payment transparency.
The Central Bank of Kenya (CBK) has introduced a new framework that will overhaul how commercial banks price loans, in a bid to strengthen monetary policy and end opaque lending practices.
The decision mirrors similar moves by Egypt and Nigeria, which also held borrowing costs steady at their most recent policy meetings amid domestic price pressures and global market uncertainties.
On Tuesday, Kenya’s central bank cut its benchmark lending rate to 9.50%, the lowest since May 2023, to boost growth as inflation rises to 4.1% and business activity contracts further.
The policy change, agreed with bankers on July 20, replaces the CBK’s earlier plans to anchor lending rates to its own Central Bank Rate, currently at 9.75%.
The bank’s decision comes as inflation declined for the sixth consecutive month in June, falling to 13.7%, supported by improved food supply, a stronger currency, and tighter fiscal control.
Track Nigeria’s 2025 lending rate trends, past decade shifts, current policy stance, and expert forecasts for interest rate moves after the July MPC meeting.
Nigeria’s decision comes despite a recent easing in headline inflation. According to official data, consumer price growth slowed to 22.2% in June — the third straight monthly decline and the lowest level recorded this year.
The scale of the intervention, which exceeds the entire 2023 total of $1 billion and represents nearly half of last year’s sales, reflects a more aggressive approach to exchange rate management.
Another key factor behind the CBE’s decision to hold rates is the government’s recent VAT reform package, announced on June 29. The amendments seek to broaden the tax base without raising the general 14% VAT rate.
The research firm projects a 150 basis point cut in the Monetary Policy Rate (MPR) to 26.0% by year-end. If implemented, the cut would mark the first rate reduction in nearly five years.
With its latest move, the central bank aims to lower Namibia’s interest rate margin from 3.7% to align with other Common Monetary Area (CMA) countries such as South Africa and Lesotho, where margins stand at 3.5%.
The directive is part of the government’s broader financial sector reform campaign aimed at deepening financial inclusion, expanding the tax base through improved payment traceability, and enabling long-term economic growth.
In a sweeping overhaul of Nigeria’s credit system, the Federal Government has announced that all citizens’ credit scores will soon be linked to their National Identification Numbers (NIN).
The move comes just days after the European Commission listed the country among high-risk jurisdictions for failing to adequately combat money laundering and terrorist financing.
The latest cut marks the sixth consecutive policy easing since August 2024 and comes as annual inflation slowed from 4.1% in April to 3.8% in May
The Washington-based lender explained that its latest stance is anchored on “good” stability in Zimbabwe’s official market and a growing likelihood of convergence between official and parallel market rates.
Born out of frustration with the big three rating agencies, AfCRA aims to offer credit assessments that better reflect the continent’s economic realities.
Fitch Ratings has downgraded the African Export-Import Bank (Afreximbank) by one notch to BBB-, placing it at the bottom of investment grade and just above junk status.
Consumer prices dropped to 18.4% in May, driven by a sharp decline in non-food inflation. Although Ghana is now on a five-month disinflation streak, inflation remains well above the central bank’s target, signalling the need for continued caution.