The market has pushed out expectations for rate cuts in SA. Whereas it had anticipated as many as four rate cuts in 2024 at the start of the year, current positioning suggests that not even one can be guaranteed at present.

Shifting US rate cut expectations, coupled with the vulnerability of the ZAR and renewed food price pressures in SA, means that the SARB has no choice but to remain more conservative.

Barring a strong recovery in the ZAR, the SARB will likely maintain a cautious monetary policy stance through the coming months.