Sticky core inflation supports case for rates hike
Analysts expect Bank to tighten policy 25 basis points to 8%, but financial markets price in a steeper rise
24 May 2023 - 11:08
UPDATED 24 May 2023 - 22:30
SA’s headline inflation slowed more than expected in April but core prices remained sticky, leaving the door open for another 50 basis point hike in interest rates when the Reserve Bank ends its monetary policy committee (MPC) meeting on Thursday.
The Bank, which began the tightening cycle in November 2021, has been looking for signs that its actions are having an impact on inflation. But a recent blowout in the rand-dollar exchange rate raised worries about its impact on prices of imported goods such as fuel...
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