Africa Weekly: Kenya’s finance scramble, South Africa CPI and rates

Kenya’s efforts to deal with its fiscal problems may alleviate short-term pressures, but we remain concerned that the path to avoiding sovereign default in the medium term remains narrow. Elsewhere, the pick-up in inflation in South Africa last month has led to a debate about whether the Reserve Bank could end or least pause its monetary easing cycle. Given how low core inflation is, we think further rate cuts are on the cards.