Some economists have painted a dire picture of the state of the economy, which they believe may drive the reserve bank to hike the repo rate later this week.
JOHANNESBURG - South African consumers may be in for some more bad news this week as the reserve bank mulls its next move to tame the country's high inflation.
The central bank's monetary policy committee is expected to meet over the next few days before announcing changes to the repo rate on Thursday.Some economists say there's no question these interest rates will be higher by the end of the week. The rand crashed against the dollar over a week ago when US Ambassador Reuben Brigety accused South Africa of selling arms and ammunition to Russia.Stanlib's chief economist, Kevin Lings, said that his money was on an increase of 25 basis points.
"Our preference is for 25 basis points. I know the currency is significantly weaker but the reserve bank has already increased interest rates substantially, the economy is exceptionally weak and I don't think there's a good argument to keep increasing interest rates at a fairly aggressive pace.""I'm afraid the reserve bank is going to tighten interest rates again and I expect them now to increase interest rates by another 50 basis points.
While it may not be good news now, both economists believe the central bank is nearing the end of the rate hiking cycle.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Sarb hike: 50bps or 25bps? | The Citizen📈💰 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
Read more »
Sarb hike: 50bps or 25bps?Most analysts predict an increase of 25 basis points, but some warn that a bigger move may be on the cards. Moneyweb RepoRate Economy
Read more »
Bank on higher interest rates for longerAnalysts expect an up to 50 basis points hike this week, with more to follow.
Read more »
ECONOMIC WEEK AHEAD: Reserve Bank expected to keep tightening the screws on inflationEyes will be on AfDB annual meetings, the interest rate announcement and consumer inflation data
Read more »
Sarb hike: 50bps or 25bps?Most analysts predict an increase of 25 basis points, but some warn that a bigger move may be on the cards. Moneyweb RepoRate Economy
Read more »
Sarb hike: 50bps or 25bps? | The Citizen📈💰 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
Read more »