EInflation is anticipated to start easing toward the midpoint of the South African Reserve Bank’s 3% to 6% target range, which is where it prefers to anchor expectations.
Against that outlook, economists are in consensus that the MPC will close off the year, leaving the benchmark rate unchanged for a third straight meeting while delivering a hawkish message. Most only anticipate rate cuts from the second quarter of next year.
Supporting its decision to hold are fresh developments, including oil prices erasing their sharp rise from late August and the Federal Reserve appearing to be done with rate hikes. That bodes well for the rand, Tatonga Rusike, an economist at Bank of America, said in a note to clients.
Against that outlook, economists are in consensus that the MPC will close off the year, leaving the benchmark rate unchanged for a third straight meeting while delivering a hawkish message. Most only anticipate rate cuts from the second quarter of next year.
Supporting its decision to hold are fresh developments, including oil prices erasing their sharp rise from late August and the Federal Reserve appearing to be done with rate hikes. That bodes well for the rand, Tatonga Rusike, an economist at Bank of America, said in a note to clients.