Debt risks and IMF deals, hawks gain ground

Recently approved IMF financing will ease near-term balance of payment pressures in Tanzania and Kenya, but the Fund’s push to tighten fiscal policy will weigh on recoveries. Meanwhile, this week’s more aggressive-than-expected interest rate decisions out of South Africa and Nigeria suggest that policymakers are pulling out all the stops to tackle inflation. And next week's central bank meetings elsewhere in the region are likely to feature chunky interest rate hikes as well.