The current make-up of South Africa's MPC means that next week's rate decision will be a close call, but we expect the Reserve Bank to embark on an easing cycle. How quickly rates come down partly depends on whether the inflation target is lowered. Meanwhile, most African economies will welcome the recent slump in oil prices. But for the region’s major oil producers, Nigeria and Angola, it simply adds to their economic challenges. Currencies have already started to weaken, which will keep inflation high and mean that interest rate cuts are still some time away.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services