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MNI SARB Preview: SARB on Hold at 3.5%, Unrest Unlikely to Spark Expedited Normalisation

SOUTH AFRICA

The SARB is expected to keep its key rate on hold at 3.5% this week, with inflation still relatively well contained within the bank's 3-6% range. While supply-side risks from socio-economic unrest may have sparked concerns of expedited policy normalisation, we expect Governor Kganyago to retain his focus on medium-term disinflationary factors and await further confirmation in the data before denting SA's recovery potential by reactively hiking policy rates.


Full Preview Here:

SARB Preview 19.07.21.pdf

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

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