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MNI SARB Preview - January 2022: SARB Resumes its ‘Gradual’ Normalisation, CPI Revisions in Focus

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Executive Summary:

  • The SARB is likely to raise its Repo Rate by +25bps this week, in line with consensus and the MPC’s forward guidance for a gradual normalisation.
  • CPI moved closer to the upper threshold of the SARB’s 3-6% range in December on exogenous factors, which should inform upward revisions to its 2022 average inflation forecasts towards 5.0-5.3%.
  • Economic activity remained weak into year-end and may ultimately cap the terminal rate to some degree, but most analysts anticipate a further +125-200bps in the pipeline for 2022.

Full Preview Here:

SARB Preview 27.01.22.pdf

MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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