Beware the prediction – it might just cost you

This week the South African Reserve Bank governor Lesetja Kganyago kept the repo rate steady at 6.75%. Despite 17 of 21 economists surveyed by Bloomberg expecting a cut.

Rewind two months and 20 of the 23 economists surveyed expected no change in the repo rate but Kganyago surprised everyone and cut it by 0.25%.

It seems expectations and reality are only two months out.

Crystal balls are best left as self-reflecting mirrors, as trying to predict the future and relying on others may just cost you. Just look at how the Rand reacted to the news.