South African Reserve Bank Governor Lesetja Kganyago
- Rates cut to 8.00% from 8.25%
- Decision was unanimous
- 2025 CPI seen at 4.1% vs 4.4% prior
- Kganyago says hold, 25 and 50 bps were on the table
The global disinflationary wave is ongoing. Eight per cent is still a tough pill to swallow but rates should come down.
"In the near term, we continue to see a dip in headline inflation, supported by the stronger exchange rate and lower oil prices. The implied starting point of the rand is R18.04 to the US dollar, an appreciation of nearly 2% relative to our July assumption. This contributes to fuel price deflation, which helps keep headline inflation below 4% through the first half of next year."
One of the boldest traders I know is bullish South African banks.
