Both South Africa and Nigeria have seen diplomatic relations with the US become more strained this week, although for now domestic dynamics should continue to support a more positive growth outlook in both countries (though insecurity in Nigeria is a major impediment to the economy). Meanwhile, the dovish commentary alongside the South African Reserve Bank’s decision to resume its easing cycle this week suggests that policymakers and markets are beginning to align with our view that the repo rate will fall below 6% over the coming year or so.
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