SARB warns of higher risk premia, Tinubu takes office

One new threat to the inflation outlook that the South African Reserve Bank highlighted at its policy meeting on Thursday was a higher country risk premium which is fuelling downward pressure on the rand. It’s hard to see the drivers of this fading any time soon, which increases the likelihood that interest rates stay high for a lengthy period. Elsewhere, Bola Tinubu will be sworn in as Nigeria’s president on Monday but we think that his time in office will only bring about marginal shifts away from unorthodox policymaking.