Post-election Rises in US Internst Rates: Rate Rises Could Hurt Africa's Access to Finance

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. Increased fiscal spending and the knock-on impact on US growth and inflation could result in faster policy rate rises by the Federal Open M...

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Bibliographic Details
Published in:Policy File 2016
Main Author: Papadavid, Phyllis
Format: Report
Language:English
Subjects:
Banking/Finance
Economic policy
International/Economic development
Overseas Development Institute
Online Access:Request full text
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Summary: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. 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. 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.