Red Sea, Suez Canal crisis fuels fresh wave of rate hikes in East Africa
Recent attacks on ships in and near the Red Sea by Yemen’s Houthi rebels have affected some of the world’s top shipping and oil companies. PHOTO | FILE | NMG
East African central banks are facing a fresh wave of rate hikes to contain inflationary pressures emanating from surging shipping and insurance costs for vessels diverting from the Suez Canal as a result of the Middle East conflict which continues to disrupt the flow of goods through the Red Sea.
The Bank of Uganda (BoU) recently convened a Monetary Policy Committee (MPC) meeting that increased its policy rate by 50 basis points to 10 percent to deal with the new inflation threats.
