Fed hikes policy rate 25bp to 3.75–4.00% on Sept. 16, 2026 — tighter dollar funding pressure for external borrowers

On 16 September 2026 the Federal Open Market Committee raised its target federal funds rate by 25 basis points to a 3.75–4.00% target range (first increase since 2023). The committee signalled a majority of participants expect at least one more 25bp hike before year-end, keeping U.S. policy on a higher-for-longer path.

A Fed 25bp hike raises short-term dollar funding costs and lifts U.S. Treasury yields, which increases hedging and refinancing costs for dollar-exposed African sovereigns and corporates. Issuers with near-term external amortisations (eg Ghana, Zambia, Nigeria) face larger rollover premia and higher USD hedging expenses, conditional on global risk appetite and spread moves; this does not assert an actual spread widening absent market data.

November 2026 FOMC meeting and incoming U.S. inflation/labour data ahead of potential further hikes.