The South African Reserve Bank (SARB) struck an optimistic tone when it cut its repo rate by 25bp to 7.75% this week and we expect more easing from here. But a potential lowering of the inflation target, which looks set to happen sooner rather than later, presents upside risks to how low rates can go. Meanwhile, Nigeria’s 2025 budget projects that the deficit will narrow but assumptions for oil prices and production as well economic growth appear hopeful. Fiscal slippage is likely, leaving the public finances on a shaky footing.
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