📈💰 Brace yourself for rising rates as Sarb tightens its grip on the economy 💸 Will it be a moderate 25bps increase or a bigger move of 50bps? 💼 Economists weigh in. CostOfLivingCrisis TheCitizenBusiness
But with the bank’s hiking cycle not expected to turn anytime soon, consumers can expect interest rates to remain at the current high level for some time.
“But there are indications from the US Federal Reserve that they may be done and will support us being done as well.” “The MPC has been concerned about upside risks to the inflation outlook for some time now and the big exchange rate move that we’ve had presents strong adverse risks to the inflation outlook,” says Maluleke.“We expect them to remain on hold until March next year. But it’s important to stress that the environment remains highly uncertain.
However, the bank adds that due to uncertainties posed by load shedding and the tumbling domestic currency it is leaving space for the possibility of a 50bps increase. “We won’t be as pressured in the relative sense to continue raising interest rates. We still want to bring inflation under control but also have to be cognisant that we’re a very low growth economy. I think that this will relieve a little bit of pressure on the MPC.”In future meetings, the Sarb will likely attempt to strike a balance between fighting inflation and considering the realities of the economy, says Roux.
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