Furthermore, several fundamental economic trends in sub-Saharan Africa are a growing source of vulnerability. Current account imbalances are rising in a majority of the continent’s countries, which are largely non-resource exporters, and contributing to a rising trend in external liabilities relative to GDP. Government budget deficits remain fairly high, pushing public debt ratios higher.
In contrast, credit easing focuses on the mix of loans and securities that the central bank holds as assets on its balance sheet as a means to reduce credit spreads and improve the functioning of private credit markets. The ultimate objective is improvement in the credit conditions faced by households and businesses.