EDITORIAL: Too early to tell if interest rates have peaked
Rand not out of the woods yet, and a rate hike can't be ruled out
When inflation rates start coming in lower than expected, that can be a good portent, suggesting that something benign is happening that the market is not quite factoring in yet.
Latest data show consumer price inflation came in lower than expected in May (https://www.businesslive.co.za/bd/economy/2023-06-21-inflation-cools-to-lowest-level-since-april-2022/), as it did in April. It is still too early to be sure that the trend will be sustained. It is also too early to expect the Reserve Bank to be persuaded that the inflation trajectory is firmly downward, so too soon yet to call an end to the interest rate hiking cycle. But there are at least some good pointers. ..
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