South African Reserve Bank expected to leave rates unchanged

JOHANNESBURG - It is widely expected that the South African Reserve Bank will leave interest rates unchanged at this week's meeting.

While headline inflation remains above the Bank's preferred target of 4.5%, it did come down in November.

Some economists believe the SA Reserve Bank has probably reached the end of its hiking cycle.

Shrinking consumer spending and slowing credit growth suggest that headline inflation may come down closer to the preferred 4.5%.

This could be followed by a cumulative cut of 100 basis points throughout 2024, with the first cut coming at the May meeting.

But the SA Reserve Bank could shift the first rate cut out to July if the rand tumbles ahead of the elections.