South Africa pauses easing cycle, Angola starts its

The South African Reserve Bank’s decision to leave the repo rate unchanged looks like a pause rather than a halt in the monetary easing cycle. We expect inflation expectations to trend lower from here, setting the stage for further interest rate cuts. Elsewhere, the Bank of Angola also held a rate meeting this week and surprised many by cutting its policy rate to 19.00%. This looks premature when weighed against the kwanza’s vulnerabilities amid struggling oil revenues.