Glimmer of hope for when the SARB will start cutting the repo rate?
Governor Lesetja Kganyago says the central bank will remain committed to reining in inflation if a new government spends more and the deficit increases.
Governor Lesetja Kganyago says the central bank will remain committed to reining in inflation if a new government spends more and the deficit increases.
Headline inflation softened to 5.2% in April, but the upside risks remain, particularly from food prices.
The markets are pricing for a rate reduction next year, and headline inflation is expected to return to the midpoint of the target band only in the last quarter of 2025.
The drier El Niño weather pattern is emerging as one of the biggest risks to the outlook for food inflation.