African central banks are expected to keep interest rates higher for longer as renewed geopolitical tensions in the Middle East threaten to reignite inflation across the continent, according to a Bloomberg report.
Bloomberg reported that at least 11 African central banks are due to announce interest-rate decisions over the next three weeks, with expectations shifting after renewed hostilities between the United States and Iran led to another disruption in shipping through the Strait of Hormuz earlier this month, sending oil and fertilizer prices higher.
The development poses a fresh challenge for policymakers who had begun to see inflation ease after years of aggressive monetary tightening.
The Strait of Hormuz is one of the world's most important energy chokepoints, carrying around a fifth of global oil supplies. Any disruption to traffic through the waterway typically pushes up crude prices, increasing fuel, transport and production costs worldwide.
For many African economies that rely heavily on imported petroleum products, higher global oil prices quickly translate into increased inflation.
