Nigeria resists government pressure to cut rates

The Central Bank of Nigeria resisted government pressure to cut interest rates this afternoon, but we suspect that a combination of below-trend growth and sub-10% inflation will pave the way for policy easing later this year. By contrast, the collapse in the rand over the past week means that policymakers in South Africa have little room to support a sluggish economy. In fact, a further sharp fall in the currency could even provoke interest rate hikes.