QUICK READ Interest Rates

The United States Federal Reserve ordered the largest interest hike in more than two decades this week in an effort to overcome stubbornly high inflation. The bank raised its benchmark rate by half a percentage point, following a quarter-point increase in March, according to news reports. Fed chairman Jerome Powell said the Fed acknowledged the pain high inflation in the US

(at 6.6% year-on-year in March) was causing consumers, adding that it would act “expeditiously” in bringing it down. Powell said he and his colleagues would consider two additional half-point rate increases at their next two meetings in June and July, but were not contemplating hikes larger than half a percentage point at a time, a comment that relieved investors.

South African-based insurer

Sanlam, and Allianz, one of the world’s leading insurers and asset managers with a century of history in Africa, have agreed to combine their current and future operations across Africa to create the largest Pan-African non-banking financial services entity on the continent.

The joint venture will house the business units of both Sanlam and Allianz in the African countries where one or both companies have a presence. Namibia will be included at a later stage while South Africa is excluded from the agreement. “In line with Sanlam’s stated ambition to be a leading Pan-African financial services group, the proposed joint venture will enable us to take a significant step towards realising that ambition,” said Sanlam Group CEO Paul Hanratty.