SARB - South African Reserve Bank

12-July-2024

SARB Announcement (Thu):

Likely to once again keep the Repo Rate at 8.25%. In June, the rate was maintained with the statement noting that considerable uncertainty remains around long-term inflation while being more optimistic on the medium-term view, stating that they see CPI stabilizing at the 4.5% objective in Q2-2025. The main update since the last SARB announcement has been the final tally of election results and the agreement between ANC and the Democratic Alliance to form a government of national unity. On the data front, May's CPI printed in-line with the prior and newswire consensus at 5.2% Y/Y, markedly above the 4.5% mid-point of the 3-6% SARB target band. The latest Reuters poll, released in June, has respondents looking for the SARB to remain on hold until November.