The Federal Open Market Committee – FOMC of the United States Federal Reserve Bank on Wednesday March 17 hiked rate a quarter of a percentage point. Federal Reserve Chairman Jerome Powell cited a 0.25% in every FOMC meeting as they seek to ebb inflation back to the 2.0% from the current 7.9% levels. Inflation in the US has been fueled by excess liquidity from pandemic induced central bank stimulus injections that has been compounded by an acute spike in crude prices, an autopsy of the current Russian – Ukrainian war as geopolitical tensions thicken globally. Signs in the sky were…
Author: The Editor
US Fed Chair Jerome Powell will worry about soaring inflation as crude prices scale higher as an autopsy of the Russian Ukrainian war.
The central bank in Africa’s second largest copper hotspot Zambia, on Thursday March 10 sold two yards worth of treasury bills in a sale that saw decent appetite of circa. K3 billion. The Bank of Zambia (BOZ) further recorded strong interest in the 1 year tenor that saw K2.4 billion bids of which 58.0% was absorbed at 50 basis points lower than previous levels of 14.25%. At 13.8710% the one year government securities remain the most attractively priced money market assets but still remain inflation underwater. Consumer Price Index (CPI) last headlined 14.2% for February. Upside risks to inflation remain…
For the fifth time in the last six months, the manufacturing gauge in Africa’s red metal producer Zambia rebounded to positive territory as new orders outweighed waning business activity. Zambia headlined 50.3 in Purchasing Managers Index (PMI) resurrected from a January slide into contraction at 49.9 as omicron effects. (Fifty is the benchmark for expansion ->50 and contraction – <50).READ ALSO: Zambia’s January Private Sector Pulse ‘Omicrons’ 160 Points into Contraction The Markit Economics report cites currency volatility as a source of cost push pressure scaling manufacturing costs. The currency quagmire remains a concern in the wake of a strong…
As uncertainty grips the world from various facets to include geopolitical tension, climate risks and exacerbating inflation as an autopsy of the COVID19 pandemic, the one thing that is taking a cue from all this, is the United States Dollar (USD). Benchmarked against a basket of (6) major currencies, the dollar index (DXY) has rallied to a 21 month high, a few points shy of the pandemic historical highs of 102.4 seen in 2020. The period is experiencing stronger asset sell – off pressure with more capital flight channeling liquidity to safer haven assets such the greenback and gold. Before…
Africa’s red metal producer Zambia on 16 February 2022 reprieve in its Long Term Issuer Rating (LTIR) after Standards and Poor’s (S&P) rating agency improved its grading to ‘CCC+‘ from ‘CCC’ with stable outlook. The agency left Zambia’s foreign currency rating at Selective Default (SD) with stable outlook. S&P cited significant steps the MinFin has taken towards restoration of fiscal fitness through local currency arrears dismantling despite the backlog still remaining high. This rating adjustment is the copper producers second assessment after it skipped coupon payments on its dollar bonds costing it a default rating on its foreign currency debt…
The globe grapples with a plethora of risks key of which are geopolitical tension in the wake of the recent Russia invasion of Ukraine, excessive inflation in light of excess liquidity injections to avert pandemic induced credit risks, climate risks occasioned by deforestation and carbon emissions and lastly the COVID19 pandemic. The world is flirting with $105 a barrel high crude prices on supply concerns on the back of war actualization in the Eastern block. The world remains divided with NATO backing Ukraine yet arguably very little tangible action save sanctions slapped on Russia whose effects may only be felt…
Risk appetite in Africa’s copper hotspot Zambia is clawing back as political risks continue to subside and the authorities take very aggressive steps to restore fiscal fitness in engagements with the Washington based lender, the International Monetary Fund. This pattern is vividly evident in the appetite skew for government securities as players are now more confident in housing liquidity in much more longer dated tenors (>3yrs) than a year ago. In the second government securities bond sale held on February 18, the Bank of Zambia (BOZ) recorded strong demand for Kwacha bonds in the medium to long term tenors signaling…
Africa’s red metal hotspot, Zambia kept its rates tad in its debut rate decision meeting of the year 2022 citing an inflation ebb as the trajectory continues towards attaining the 6-8% target. Deliberations commenced on 14-15th February with the announcement made today Wednesday 16th February 2022 in the Bank of Zambia auditorium. Governor Denny Kalyalya announced the monetary policy stance keeping rates at 9.0% supported by the current sharp easing trajectory but warned of brewing inflationary pressures from both endogenous and exogenous factors such as rising crude, electricity, food prices and supply chain bottlenecks. READ ALSO: In Last MPC of 2021, Kalyalya Hikes…
Africa’s red metal hotspot, Zambia could see its first rate hike in the debut rate decision meeting of 2022 whose deliberation will commence on 14-15th February with the announcement to be made on Wednesday 16th February 2022. Since the last meeting that saw a 50 basis points (bps) climb to 9.0% marking the genesis of a rate hike cycle in the wake of widened inflation, the Southern Africa nation has seen volatility in currency characterized by a rally triggered by further confidence boost when the Ministry of Finance reached consensus with the Special Mission team of the International Monetary Fund for a…