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MNI SARB Preview: SARB to Hike 25bps, MPC Looks Through Exogenous Drivers

SOUTH AFRICA

POV: SARB to Hike 25bps, MPC Looks Through Exogenous Drivers


  • The SARB is broadly expected to raise its repo rate by 25bps this week, with the MPC acknowledging policy’s inability to mitigate the effects of exogenous energy shocks by accelerating the pace of tightening.
  • Governor Kganyago is likely to deliver hawkish inflation forecast updates due to the ongoing crisis in Ukraine, but may err on the side of caution in terms of hobbling the nascent recovery with larger hikes at this juncture.
  • The MPC vote will be key in determining any prospect of future accelerations with some analysts seeing potential for one dissenting +50bp vote.

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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