US Fed caution casts doubt on SA rate hike in July

It is no secret that the South African Reserve Bank (SARB) has been worried about the timing of US rate hikes and the effect this would have on capital flows, the rand and the resultant impact on the local inflation outlook. The SARB’s concern over the upside risks to the inflation outlook persuaded the market to price in a July hike of 25bps.

Lesetja Kganyago, SARB Govenor

SARB puts a smile on bleak inflation outlook

SA’s Reserve Bank (SARB) said a moderate tightening in monetary policy will help it keep inflation under control without causing too much harm to economic growth. The bank will resume its “interest-rate normalisation” policy should risks to the inflation forecast materialise.