Inflation expectations drifted higher in the last quarter of 2022, signalling a more hawkish outlook ahead of next week’s Reserve Bank monetary policy committee (MPC) interest rate decision.

Borrowing costs have increased by 350 basis points (bps) since the start of the rate-hiking cycle in November 2021. In 2022 there were three consecutive 75 bps hikes, the largest increases in two decades, following accelerating inflation as a result of fuel and food price hikes, as well as the rand losing significant value in the face of the US Federal Reserve’s hawkish monetary policy stance...

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