‘Only difficult choices ahead for the SARB’ – Nedbank
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GUEST – Isaac Matshego – Nedbank Senior Economist
SARB's Monetary Policy Committee (MPC) left the repo rate at 7.50% at its March meeting, following cuts of 25 bps at each of the previous 3 meetings. While the MPC expected inflation to remain contained over the short term but feared that a global trade war could unsettle the rand and lead to renewed price pressures over the medium term. The MPC probably also took note of the Fed’s growing caution, understanding that a prolonged pause or even tighter monetary policy by the Fed could amplify the downward pressure on the rand. While stressing the upside risks, SARB nonetheless lowered its inflation forecasts to only 3.6% in 2025 and 4.5% in 2026 and 2027. The central bank expected lower oil prices to dampen the impact of the VAT rate hike, a weaker rand, and higher electricity tariffs over the short term.GUEST – Isaac Matshego – Nedbank Senior Economist
SARB's Monetary Policy Committee (MPC) left the repo rate at 7.50% at its March meeting, following cuts of 25 bps at each of the previous 3 meetings. While the MPC expected inflation to remain contained over the short term but feared that a global trade war could unsettle the rand and lead to renewed price pressures over the medium term. The MPC probably also took note of the Fed’s growing caution, understanding that a prolonged pause or even tighter monetary policy by the Fed could amplify the downward pressure on the rand. While stressing the upside risks, SARB nonetheless lowered its inflation forecasts to only 3.6% in 2025 and 4.5% in 2026 and 2027. The central bank expected lower oil prices to dampen the impact of the VAT rate hike, a weaker rand, and higher electricity tariffs over the short term.GUEST – Isaac Matshego – Nedbank Senior Economist
SARB's Monetary Policy Committee (MPC) left the repo rate at 7.50% at its March meeting, following cuts of 25 bps at each of the previous 3 meetings. While the MPC expected inflation to remain contained over the short term but feared that a global trade war could unsettle the rand and lead to renewed price pressures over the medium term. The MPC probably also took note of the Fed’s growing caution, understanding that a prolonged pause or even tighter monetary policy by the Fed could amplify the downward pressure on the rand. While stressing the upside risks, SARB nonetheless lowered its inflation forecasts to only 3.6% in 2025 and 4.5% in 2026 and 2027. The central bank expected lower oil prices to dampen the impact of the VAT rate hike, a weaker rand, and higher electricity tariffs over the short term.
SARB's Monetary Policy Committee (MPC) left the repo rate at 7.50% at its March meeting, following cuts of 25 bps at each of the previous 3 meetings. While the MPC expected inflation to remain contained over the short term but feared that a global trade war could unsettle the rand and lead to renewed price pressures over the medium term. The MPC probably also took note of the Fed’s growing caution, understanding that a prolonged pause or even tighter monetary policy by the Fed could amplify the downward pressure on the rand. While stressing the upside risks, SARB nonetheless lowered its inflation forecasts to only 3.6% in 2025 and 4.5% in 2026 and 2027. The central bank expected lower oil prices to dampen the impact of the VAT rate hike, a weaker rand, and higher electricity tariffs over the short term.GUEST – Isaac Matshego – Nedbank Senior Economist
SARB's Monetary Policy Committee (MPC) left the repo rate at 7.50% at its March meeting, following cuts of 25 bps at each of the previous 3 meetings. While the MPC expected inflation to remain contained over the short term but feared that a global trade war could unsettle the rand and lead to renewed price pressures over the medium term. The MPC probably also took note of the Fed’s growing caution, understanding that a prolonged pause or even tighter monetary policy by the Fed could amplify the downward pressure on the rand. While stressing the upside risks, SARB nonetheless lowered its inflation forecasts to only 3.6% in 2025 and 4.5% in 2026 and 2027. The central bank expected lower oil prices to dampen the impact of the VAT rate hike, a weaker rand, and higher electricity tariffs over the short term.GUEST – Isaac Matshego – Nedbank Senior Economist
SARB's Monetary Policy Committee (MPC) left the repo rate at 7.50% at its March meeting, following cuts of 25 bps at each of the previous 3 meetings. While the MPC expected inflation to remain contained over the short term but feared that a global trade war could unsettle the rand and lead to renewed price pressures over the medium term. The MPC probably also took note of the Fed’s growing caution, understanding that a prolonged pause or even tighter monetary policy by the Fed could amplify the downward pressure on the rand. While stressing the upside risks, SARB nonetheless lowered its inflation forecasts to only 3.6% in 2025 and 4.5% in 2026 and 2027. The central bank expected lower oil prices to dampen the impact of the VAT rate hike, a weaker rand, and higher electricity tariffs over the short term.
