When the South African central bank rises interest rates on September 22, it is anticipated that it will finish eliminating the stimulus measures it implemented during the epidemic.
According to a Bloomberg poll, all analysts anticipate that the five members of the monetary policy committee will increase the repurchase rate from 5.5% to 6.25%.
The predicted vote-split indicates that four panellists will support a three-quarter point increase and one will support a one-point increase.
The standard will revert to its January 2020 level, when stop-start coronavirus-lockdown limitations curtailed activity, with a second consecutive 75-basis point rise.
At 15:00, a decision on interest rates will be made.
It would also raise the key rate substantially over 5.61%, which is the suggested policy path shown for year-end by the Reserve Bank’s Monetary Policy Committee (MPC), which uses the central bank’s quarterly forecast model as a guidance.
A day after statistics revealed that inflation decreased for the first time in seven months, Thursday’s decision will be made.
The rand’s more than 10% loss versus the dollar and the US’s fast tightening of monetary policy, including a 75 basis-point interest rate rise announced on Wednesday, are expected to be the main factors behind the bank’s decision.
The decision of South Africa will be revealed at a virtually broadcast briefing that begins at 15:00 in Pretoria.
The central bank’s economic projections, including those for inflation, rates, and economic growth, will also be updated by governor Lesetja Kganyago.