Dep Gov Naidoo Says SARB Is Long Way Off Rate-Cut Debate

SARB Economic Research Department head Christopher Loewald says that one cannot compare the new Quarterly Projection Model (QPM) with the old one, as they are "chalk and cheese," with notable differences in their composition.

• Deputy Governor Kuben Naidoo adds that monetary policy decisions affect the real economy with a lag of around 12-24 months. At this point, policymakers believe that inflation is "on a glidepath" to the +4.5% Y/Y target mid-point despite upside risks.
• Naidoo adds that the Monetary Policy Council did not discuss rate cuts at this meeting and is a long way off from such debates. He says that "if we think [disinflation] is going too slowly, we will add more hikes."