Investment Times

Kenya and Uganda’s differing currency trajectories will likely see their central banks take divergent paths on interest rates this year. While both their monetary policy committees are expected to hold borrowing costs this week, analysts predict that Uganda may need to keep its interest rate higher for longer to support its currency, whereas Kenya should be able to ease later this year. “Kenya and Uganda have among the highest real policy rates in the world, suggesting there is room for both countries to lower rates,” said Patrick Curran, senior economist at Tellimer Ltd. “However, a decline in external concessional funding...