ISAAH MHLANGA: Bank’s hike probably the last in this cycle as inflation ebbs
Unless inflation surprises with an upswing, rate hikes should taper off
The SA Reserve Bank hiked rates by an unexpected 50 basis points yesterday, taking the repurchase rate to 7.75%. This decision was contrary to economist and market expectations for a 25 basis point rise.
Balancing out the current inflation dynamic, the medium-term inflation outlook, weak growth expectations for this year, the tepid recovery and still weak global growth prospects, the Bank should be done hiking rates in this cycle unless there are upside surprises in inflation. ..
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