Expectation from South Africa’s Interest Rate Decision As Monetary Policy Committee Meets Today

The Reserve Bank’s Monetary Policy Committee (MPC) is expected to hold the repo rate at 3.5% when it announces its policy decision on Thursday (19 November). That is today.

12 of 14 economists (86%) surveyed anticipates a hold when the South African Reserve Bank (SARB) makes the announcement despite nearly half of economists calling for a rate cut.

57% of economists think a hold is a right decision and 43% say the bank should cut the rate.

South Africa’s MPC meets as key data suggest gross domestic product may have exceeded its forecast for an annualised 45.2% increase in the three months through September, according to analysis from Bloomberg.

Your Friends Also Read:  South Africa's Aveng Group to sell Infraset unit for $200 million

“Stricter lockdowns in advanced economies that pose a threat to exports and output in the final quarter, as well as the bank’s decision to front-load aggressive cuts in the first half of the year, could see it stand pat,” it said.

12 of 16 economists in a Bloomberg survey see the rate staying at 3.5%, with the other four predicting a 25 basis point cut. Forward-rate agreements, used to speculate on borrowing costs, predict a less than one-in-four chance of a quarter percentage point cut.

“Split decisions at the last three meetings suggest a lack of consensus among the MPC and that its signals are ‘becoming far less clear’, which supports the case for a pause,” according to Nicky Weimar, Chief Economist at Nedbank.

Your Friends Also Read:  Trade Volume Between South Africa and Nigeria Hits $2.9bn in 2020

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from News Central TV.

Contact: digital@newscentral.ng


Leave a Reply

Previous Article
Police arrest Ugandan pop-star MP Bobi Wine, supporters teargassed

U.S. Condemns Violence After Uganda Presidential Election Candidate Bobi Wine's Arrest

Next Article

Post Harvest Loss in Nigeria Totals N3.5 Trillion Annually – Farmcrowdy CEO

Related Posts