Reserve Bank unlikely to raise rates despite CPI hitting 30-month high
Economists say inflation probably peaked in 2021 at a 30-month high in May, suggesting rate hikes are unlikely for the rest of the year
The SA Reserve Bank is likely to hold off on hiking interest rates in 2021 despite consumer inflation reaching a 30-month high in May. Most economists have said the spike in the gauge was due to prices normalising from unusually low levels in 2020.
That’s despite hawkish comments from Federal Reserve chair Jerome Powell last week that many interpreted as a signal that US rates may rise sooner than previously expected. Powell's comments prompted a sell-off in the rand that saw it retrace from stronger than R13.50/$ last week to about R14.18/$ on Wednesday...