FRENCH BANK
BNP Paribas sees below-target SA inflation paving way for lower rates
The bank sees inflation breaching the lower bound of the Reserve Bank’s target range and potentially staying there until the second quarter of 2021
11 May 2020 - 11:40
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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