SA could be in store for interest rate hike in late 2021, says BNP Paribas
Rising core inflation and a better-than-expected economic recovery could mean 50 basis points of cumulative hikes by the end of January 2022
19 May 2021 - 07:52
BNP Paribas, one of the world’s largest banking groups with operations in more than 70 countries, has brought forward its interest rate expectations, saying the Reserve Bank should raise rates in late 2021 amid rising core inflation and an economic recovery.
Relatively contained inflation, a need to support economic growth, and a relatively steady rand have been cited as reasons by economists who unanimously expect the Bank to keep the repo rate on hold at 3.5% on Thursday. The market has also been betting that the Bank will raise rates only in early 2022...
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