Post-election rises in US interest rates: Rate rises could hurt Africa’s access to finance

P. Papadavid | ODI

This Briefing Paper, presents a brief analysis of how Post-US election, the increase in longer-dated US bond yields partly reflect expected fiscal easing that could increase US debt over the medium- to longer-term. It further highlights how increased fiscal spending and the knock-on impact on US growth and inflation could result in faster policy rate rises by the Federal Open Market Committee, leading to global volatility, and points out how sustained interest rate rises could affect the cost of finance for sub-Saharan African economies already vulnerable as a result of depreciating currencies and slowing growth.

Categories:
Bond Markets & Exchanges
Pages:
0
Year of publication:
30.11.2016
External Document: