ELNA MOOLMAN: Inflation and interest rate relief still on the cards
A gradual recovery in economic growth, which could even be more than double last year’s 0.6%, is still expected this year
While interest rate cuts have been under way for some time in several of South Africa’s emerging market peers, South Africans are not yet enjoying such financial relief, and nor is it likely to be announced at the next interest rate meeting later this month.
Indeed, the domestic interest rate trajectory remains subject to elevated forecast risk, which recently flared up to such an extent that the money market swung from foreseeing rate cuts to rate hikes instead. Though these changes (in inflation drivers and interest rate expectations) have subsequently reversed, they demonstrated the elevated, and broad-based, forecast risk from factors ranging from the domestic election and crop estimates to geopolitical warfare and global interest rates...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.