November 22, 2024 11:11 GMT
MNI SARB Review - Nov 2024: More Cautious Cut
The SARB cut rates by the expected 25bp increment but the accompanying language turned slightly more cautious.
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Executive Summary:
- The SARB cut rates by 25bp as inflation fell below the target range.
- Communications turned more cautious amid highly uncertain environment.
- Governor Kganyago said that inflation target review may soon conclude.
Full review including summary of sell-side views here: MNI SARB Review - November 2024.pdf
The South African Reserve Bank (SARB) delivered the widely expected 25bp cut to the repo rate in a unanimous decision in a repeat of the outcome of the September meeting. However, the rhetoric that accompanied the decision turned somewhat more cautious, with Governor Lesetja Kganyago pointing to a highly uncertain external environment. He also confirmed that the Monetary Policy Committee (MPC) did not discuss cutting rates by 50bp this time around.
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