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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
south africa
south africa
Executive Summary
- The SARB is widely expected to lift the repo rate by +50bps this week to 4.75%, accelerating the pace of tightening on the back of broadening global inflation pressures and a weaker ZAR.
- Although the growth outlook remains fragile, the SARB will be conscious of falling behind the Fed’s normalisation trajectory and underwhelming market expectations that have coalesced around a +50bp hike in the lead-up to the meeting
- Floods in KZN, worsening Eskom load-shedding and extensive strike action in Sibanye-Stillwater mines are also set to reflect in upcoming data, creating dovish risks on the margin to the SARB’s FY22 growth forecasts.
- Going forward, however, the SARB is likely to revert to more standard +25bp steps with inflation expected to moderate in 3Q-4Q22, but a sharp rise in food inflation could prompt another +50bp step in July.
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MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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