
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.
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.
The prescribed interest rate isn’t just a technicality – it determines how much extra you’ll pay (or receive) in a legal dispute, and once it applies to a debt, it stays locked in, even if rates drop later.
Stable growth and fiscal discipline could see South Africa’s credit rating rise two notches in the next three years.
How low will the repo rate drop, and how fast? Economists share their insights.
Economists assess the possible impact of the reforms on household consumption, real fixed investment, inflation, government debt, and GDP growth.
The annual inflation rate remained unchanged at 5.2% in May, but it is still some way from the Reserve Bank’s target of 4.5%.
Governor Lesetja Kganyago says the central bank will remain committed to reining in inflation if a new government spends more and the deficit increases.
Headline inflation softened to 5.2% in April, but the upside risks remain, particularly from food prices.
Bank Zero’s chief executive agrees that the Corporation for Deposit Insurance has the potential to boost the competitiveness of the new digital banks.
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.