The SA Reserve Bank will miss its inflation target to the downside, paving the way for further interest rate cuts to support an economy battered by the Covid-19 outbreak, says French bank BNP Paribas.

The bank sees inflation averaging 2.8% in 2020 as the 55% drop in oil prices and collapsing demand amid a wave of  retrenchments and business failures outweigh the effects of the rand’s depreciation.

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