April 24, 2024 06:29 GMT
SARB Warns That Sticky Inflation Delays Rate Cuts
SOUTH AFRICA
- The South African Reserve Bank (SARB) said in its Monetary Policy Review that rates may need to stay higher for longer as the "path back to the +4.5% Y/Y mid-point of the target band" has become "more bumpy and protracted." The odds of monetary easing anytime soon were explicitly played down: "amid setbacks in recent domestic inflation outcomes, along with heightened uncertainty about global disinflation owing to stickiness in services inflation, markets now expect South Africa’s policy rate to remain unchanged this year." The SARB also revealed that it has developed two new inflation gauges ("supercore" measures and the so-called "persistent and common component of inflation" tracking underlying price pressures - and both are at elevated levels.
- The Constitutional Court will hear the appeal filed by the Independent Electoral Commission (IEC) against the verdict of the Electoral Court (EC), which ruled that ex-President Jacob Zuma is eligible to run in the upcoming parliamentary election. Zuma's MK Party has until today to respond to the IEC's appeal.
- Electricity Minister Kgosientsho Ramokgopa insisted that there was no political interference behind the latest reprieve from loadshedding but also warned that power cuts could return at some point.
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