adminSouth Africa’s Reserve Bank (SARB) will pause in easing its repo rate this week and cut it by a quarter of a percent to 3,25 percent in November to cushion a deep pandemic-driven economic contraction before inflation resurfaces, a Reuters poll found last Friday.
Following 300 basis points of SARB cuts this year, a poll taken in the past week showed 15 economists saw the repo rate on held on Thursday while 10 predicted a modest 25 basis point cut to 3.25 percent.
However, the survey median shows rates will be cut in November for the last time in this cycle before the SARB begins raising rates to 3.50 percent in either July or September.
“The SARB still has room for another rate cut worth 25 basis points, but this will be contingent on data,” wrote Citi’s Luis Costa. — Reuters.
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