South Africa - expect another interest rate hike in 2023
Economists and experts have revised interest expectations for South Africa, the expectation is an increase of 25 basis points in November 2023 (to 8.50%, prime rate to 12%).
The revised forecast comes after renewed pressure resulting from risks around oil, food and currency exchange rates.
We are likely to see increases in food prices especially as a result of the recent bird flu outbreak coupled with higher oil prices and power cuts.
Rising oil prices coupled with a weaker Rand means the South African Reserve Bank (SARB) will likely look at keeping interest rates on the higher end in the near term.
Economists predict the inflation outlook rate to return to 4.5% in 2025 and the consumer price index to average out on 5.3% in 2024.
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