In line with ETM’s expectation, the SARB MPC voted in favour of leaving the benchmark interest rate on hold at 8.25% (3-2 split) today. The decision to leave rates on hold comes on the back of the recent disinflation trend, which is expected to persist in the months ahead. The pause comes after a period of 10 consecutive hikes and may be the end of the current tightening cycle. While the SARB still assesses inflation risks to be tilted to the upside, the MPC downwardly revised its 2023 and 2024 inflation forecasts lower.

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