Lower inflation expectations will pile pressure on SARB's MPC to finally cut repo rate: Economist
Inflation has eased over the last few months bringing it down to the current 4.6% - which the lowest level since July 2021.
Picture: Eyewitness News
JOHANNESBURG - The inflation print is set to be in sharp focus on Wednesday when Statistics South Africa (Stats SA) releases the figures for August.
This will be the last set of important data to be released before the South African Reserve Bank (SARB)’s Monetary Policy Committee (MPC) announces its decision on policy rates on Thursday.
Inflation has eased over the last few months bringing it down to the current 4.6% - which the lowest level since July 2021.
Economist at Sanlam investments – Patrick Buthelezi – says the cooler and lower inflation expectations will pile pressure on the central bank’s MPC to finally cut the repo rate from its 15-year high of 8.25%.
“We expect the MPC at the Reserve Bank to start its rate cutting cycle by at least 25 basis points at the end of its Monetary Policy Meeting (MPC) on Thursday, joining the growing number of central banks cutting rates. The US Fed will probably [be] cut by 25 basis points a day before the SARB, which will help to protect the exchange rate.”