Goldman Versus HSBC, Citi in South Africa Rate Puzzle

07/20/2023 14:27
Goldman Versus HSBC, Citi in South Africa Rate Puzzle

Economists are divided over whether South Africa’s central bank will pause interest-rate increases on Thursday, or extend its longest phase of monetary tightening since 2006.

  • Economists are split over next central bank interest-rate move
  • Policymakers seen voting 3-2 for 25 basis-point rate hike

Economists are divided over whether South Africa’s central bank will pause interest-rate increases on Thursday, or extendBloomberg Terminal its longest phase of monetary tightening since 2006.

Deteriorating inflation expectations, currency risks and enhancements to the South African Reserve Bank’s quarterly projection model, used to inform its rate decision, are clouding the outlook.

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