SARB on hold....for the foreseeable future

There was little surprise from the SA Reserve Bank today as the MPC kept rates on hold.  More interestingly, there was a significant decline in the SARB’s inflation forecasts, with the 2019 average shifting from 5.5% to 4.8%.  The Bank now expects inflation to remain below 5% through 2019. 

 

As a result of this, the Banks’ Quarterly Projection Model now sees only one more 25bps hike by end 2021, down from 75bps in further h