Why it’s time to cut interest rates
If the US Fed cuts rates next month to spare the US economy from a downturn, it won’t come a moment too soon for South Africa, where the nascent recovery depends on the Reserve Bank following suit
29 August 2024 - 05:01
It looks as if the US economy, and by extension South Africa, may achieve the rarest of feats — a soft landing — with financial markets pricing in high odds of both the US Federal Reserve and the Reserve Bank starting their rate cutting cycles in September.
In fact, many local economists are pricing in four rate cuts from the Bank between now and the middle of next year, up from three previously. This is after South African consumer inflation for July significantly undercut consensus expectations by coming in at just 4.6%, down from 5.1% previously — its lowest level in three years. ..
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