Flash Report /
South Africa

South African Reserve Bank resists temptation to cut

  • SARB held rates at 3.5% in a 3/2 split decision, in line with expectations. Bias will remain towards easing

  • Inflation is subdued and expectations well anchored, but SARB calls for structural reform to boost growth

  • Renewed Covid surge and power blackouts weigh on growth, and budget under pressure. Yield curve likely to steepen

South African Reserve Bank resists temptation to cut
Patrick Curran
Tellimer Research
21 January 2021
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