Interest rate cuts could start as early as September, Absa expects | Business

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Absa's economic unit says the interest rates hike in January may be the last in this rate hiking cycle - unless the rand weakens further and inflation goes against expectations. | News24_Business

Absa's economic unit says the interest rates hike in January may be the last in this rate hiking cycle - unless the rand weakens further and inflation goes against expectations.

Senior economist at Absa Corporate and Investment Banking Peter Worthington said SA's real repo rate is now above consumer price inflation. The Monetary Policy Committee looks at the real repo rate when making its decision, not the nominal rate. He also said Absa CIB's base case scenario forecast that headline inflation will be back to just above the midpoint of the SA Reserve Bank's target range in the second half of this year. The group expects core inflation to have peaked by then or be close to reaching its peak.Get 14 days free to read all our investigative and in-depth journalism. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed.

 

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