Fuel pushed May inflation higher, but the policy-rate outlook has shifted
The SARB still faces risks, although lower oil prices and improving supply expectations point to a less threatening inflation path than three weeks ago.
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SARB clarifies 3% inflation target as policy shifts draw mixed reactions
The MPC’s first rate cut in months underscores the SARB’s view that a lower target can support a gradual easing cycle.
SARB ramps up 3% inflation goal – Godongwana insists on due process
The Reserve Bank’s repo rate cut by 25bps to 7% signals the start of a more accommodative cycle as inflation remains firmly under control.
Can the SARB anchor inflation at 3% without hiking rates?
SARB economist Thuli Radebe explains how targeting lower inflation could ease borrowing costs and support growth – challenging fears that a 3% goal means more interest rate hikes.
Glimmer of hope for when the SARB will start cutting the repo rate?
Governor Lesetja Kganyago says the central bank will remain committed to reining in inflation if a new government spends more and the deficit increases.
What the SARB is waiting for before it starts cutting the repo rate
Headline inflation softened to 5.2% in April, but the upside risks remain, particularly from food prices.
SARB signals the repo rate may not be cut until 2025
The markets are pricing for a rate reduction next year, and headline inflation is expected to return to the midpoint of the target band only in the last quarter of 2025.
Interest rate cuts only likely in the third quarter of this year
The drier El Niño weather pattern is emerging as one of the biggest risks to the outlook for food inflation.
