Flash Report /
South Africa

South African Reserve Bank follows the trend with a 25bps hike

  • SARB hiked 25bps to 3.75% despite relatively weak growth outlook, low inflation and well-anchored inflation expectations

  • Prudent move to preempt possible swings in EM risk sentiment from sticky global inflation and tighter DM monetary policy

  • Future rate hikes likely to be less aggressive than markets anticipate unless upside inflation risks materialise

South African Reserve Bank follows the trend with a 25bps hike
Patrick Curran
Tellimer Research
19 November 2021
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