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Absa's economic team warns that the South African Reserve Bank's interest rate cutting cycle may be coming to an end following the decision to keep the repo rate unchanged at 7. 50%. Despite lower inflation forecasts, concerns about global trade tensions and domestic uncertainty are likely to prevent further cuts in the near term
The South African Reserve Bank faces a crucial decision on interest rates as inflation continues to challenge economic stability. Here's what economists predict and how it could affect your wallet.
The South African Reserve Bank faces a crucial decision on interest rates as inflation continues to challenge economic stability. Here's what economists predict and how it could affect your wallet.
South African financial experts have adjusted their inflation expectations downward for 2025, with the Bureau for Economic Research's latest survey showing a decrease from 4. 5% to 4. 3%. This shift comes amid varying outlooks from analysts, business executives, and trade unions, pointing to a cautiously optimistic economic forecast.
Economists said the rand has been stronger against the US dollar and the expectation is that the US Federal Reserve will cut interest rates at their next meeting in September, just before the South African Reserve Bank meets to make its decision on interest rates.
Experts say that inflation still remains above the South African Reserve Bank’s (SARB) target of 4. 5%.
Consumers’ belts are as tight as they can get and people simply can’t afford to get onto the property ladder.
The announcement today by the Monetary Policy Committee (MPC) of an interest rate hike of 75 basis points throws South Africans into a debt crisis. However, economists urge you to hold on tight as rate hikes are expected to stabilise by next year.