Interest rates: the Sarb will not bow to political pressure
A 200 basis point cut in the repo rate will lead to the rand plunging by between 12% and 15%, putting upward pressure on inflation through more expensive imports.
A 200 basis point cut in the repo rate will lead to the rand plunging by between 12% and 15%, putting upward pressure on inflation through more expensive imports.
Any stupid remark or action could lead to a further downgrade in South Africa’s credit rating and higher 10-year government bond yields.
The country is in a position similar to the one it was in before the apartheid system collapsed.