Macro Analysis /
South Africa

South African Reserve Bank holds rates; bias towards stable rates in 2021

  • The SARB held at 3.5%, in line with expectations, looking through last month’s transitory jump in inflation

  • Global sentiment, rising commodity prices, high real rates & positive fiscal surprises have led to ZAR outperformance

  • Markets pricing rate hikes this year, but SARB likely to hold rates barring upside inflation surprises

South African Reserve Bank holds rates; bias towards stable rates in 2021
Patrick Curran
Tellimer Research
20 May 2021
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