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MNI SARB Preview - May 2024: Post-Election Hold

Executive Summary

  • The SARB is widely expected to stand pat on rates.
  • Inflation ticked lower in April but stayed above the target mid-point.
  • The latest Monetary Policy Review reaffirmed the SARB's hawkish views.

Full preview including summary of sell-side views here:

MNI SARB Preview - May 2024.pdf

The South African Reserve Bank (SARB) will most decide to keep interest rates unchanged during the first post-election monetary policy meeting. Although inflationary pressures have continued to subside, key metrics monitored by the central bank remain above the +4.5% Y/Y mid-point of the target range. In conjunction with the SARB’s well-documented hawkish approach to monetary policy, this should result in another stand-pat decision accompanied by rhetoric reaffirming determination to contain price growth.

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