Angola’s aggressive rate cut, SA’s political instability

Angola’s central bank cut interest rates by more than expected this week to prop up struggling growth, but growing imbalances make the kwanza vulnerable to falls which could bring this monetary easing cycle to an abrupt halt. Elsewhere, South Africa’s Democratic Alliance has been dealing with an intra-party squabble. We suspect this will be the first of quite a few flashpoints in South African politics this year with the national budget, President Ramaphosa’s successor and municipal elections other issues that could put pressure on the GNU’s stability.