Central banks in Ghana, South Africa, Egypt, and several other African nations are set to announce interest rates over the next month, each adopting different strategies to mitigate the risks posed by U.S. President Donald Trump's protectionist policies.

In Ghana, the Bank of Ghana's Monetary Policy Committee (MPC) has scheduled its next meeting from March 25 to 28, 2025, with the outcomes to be announced on March 31, 2025. As of January 27, 2025, the current policy rate is set at 27%.

Speaking in an interview with Bloomberg ahead of the policy rate announcements across the continent, EY Africa Chief Economist Angelika Goliger stated, “The common theme across these countries is expected to be a cautious approach to monetary policy, as central banks navigate the delicate balance between controlling inflation and fostering economic growth.”

She continued, “This balancing act is influenced by a myriad of factors, including domestic economic conditions and global economic trends, which are now much more at the forefront due to foreign and trade policies emerging from the U.S. and their global impacts.”

Meanwhile, Trump's rhetoric and tariff measures against neighbors, allies, and competitors have escalated in recent weeks, threatening trade and creating uncertainty.

The Federal Reserve’s projected rate path, set to be revealed on Wednesday, will also factor into central banks’ deliberations. Higher-for-longer interest rates in the U.S. could strengthen the dollar, putting African currencies under pressure.

Goliger emphasised that, after three consecutive 25-basis-point interest rate cuts to 7.5%, South Africa will likely hold rates steady in the coming days.

Global uncertainties that previously led the MPC to cautiously lower borrowing costs have intensified since its last rate move on January 30.

Inflation across most African nations has been steadily easing since late 2023 and remains low and stable in some countries, including Kenya and Morocco.

However, Citigroup Incorporated’s Chief Africa Economist, David Cowan, noted exceptions such as Ethiopia, Ghana, and Nigeria. Nevertheless, inflation in these countries is also expected to cool this year.

SP/EK

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