South Africa CPI (Aug.)

South African inflation remained below the target midpoint in August, which we think will allow policymakers to cut their key rate from 6.50% to 6.25% at their meeting tomorrow.
John Ashbourne Senior Emerging Markets Economist
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FX orthodoxy in Nigeria? Strikes in SA, Ethiopia’s conflict

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Tumbling rand, coronavirus containment, default risks

The current risk-off sentiment means that the South African rand’s slide this week will probably continue in the near term. And escalating containment measures will take an economic toll, despite worries about their effectiveness. In the meantime, the coronavirus and low commodity prices are putting pressure on most African economies’ balance of payments positions and pushing many sovereigns closer to default.

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