Experts expect the Monetary Policy Committee (MPC) to hold interest rates next week, but persistent inflation risks mean some have pushed their first-rate cut expectations further back towards the end of the year. South Africa’s Reserve Bank (SARB) will decide on its interest rate stance next week on Wednesday (27 March), with the bi-monthly meeting giving insight into the MPC’s inflation and interest rate expectations.
The SARB has long been clear about its inflation concerns, stating that it wants CPI inflation to reach 4.5% year-on-year and sustainably remain around this midpoint before cutting rates.the South African Reserve Bank will not cut its interest rate either this month or at its May MPC meeting“The task of taming inflation is not yet done. Until that is done, I don’t see why there should be a change in the monetary stance,” said Kganyago. “The inflation outlook is uncertain, and it’s been volatile. Until inflation stabilizes where we want it, at