The South African Reserve Bank (SARB) struck an optimistic tone when it cut its repo rate by 25bp to 7.75% this week and we expect more easing from here. But a potential lowering of the inflation target, which looks set to happen sooner rather than later, presents upside risks to how low rates can go. Meanwhile, Nigeria’s 2025 budget projects that the deficit will narrow but assumptions for oil prices and production as well economic growth appear hopeful. Fiscal slippage is likely, leaving the public finances on a shaky footing.
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