Economists divided ahead of SARB rate decision
The Reserve Bank's Monetary Policy Committee (MPC) will wrap up its meeting on policy rates on Thursday.
South African Reserve Bank Governor Lesetja Kganyago. Picture: @SAReserveBank/X
JOHANNESBURG - Some economists don't believe the awaited decision on the repo rate on Thursday will be cut and dry with a mix bag of data that could sway policymakers either way.
The Reserve Bank's Monetary Policy Committee (MPC) will wrap up its meeting on policy rates on Thursday.
South African consumers are hoping for some reprieve on the interest rates that have remained elevated, but economists say they could still be higher for longer.
The repo rate currently sits at 7.5 percent and prime lending at 11 percent.
In March, the central bank paused the cutting cycle for the first time after three consecutive cuts.
READ: 'More moving parts than usual' prompted cautious approach on repo rate - Kganyago
US President Donald Trump's global trade war and the unprecedented budget mayhem are among factors that have previously weighed on the MPC's decision.
On the upside inflation remains below the midpoint of the reserve bank’s 3-6 percent target band and the rand remains stronger than it’s been in months.
The majority of economists polled by Reuters have predicted a 25-basis point cut in the May meeting with the central bank then expected to keep rates constant until November.
While some economists believe there is room to cut rates 9 of the 25 economists surveyed by Reuters believe consumers should brace for another pause.