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SARB Seen Putting Rates Higher by Another 75bps

SOUTH AFRICA
  • News24 write that Ramaphosa and his cabinet are still continuing talks and discussions on how to address load-shedding. Yesterday, the cabinet started deliberations at 8am local time, and were still in talks at the close of business. Reports in BusinessDay suggest the government are considering changes at Eskom’s board of directors, after persistent calls for the departure of the CEO.
  • Ahead of next month’s medium-term budget statement, finance minister Godongwana has said further income support will be forthcoming, with reports speculating that the R350 COVID support grant could be made permanent.
  • The SARB are expected to tighten policy further today, with a 75bps rate hike expected, lifting policy to 6.25%. The moves come as CPI climbs further above the top-end of the inflation target, touching 7.8% in July and 4.6% on a core basis. Full MNI Preview here: https://roar-assets-auto.rbl.ms/documents/18457/MN...

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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