South Africa: SARB widely expected to keep policy rate unchanged – Rabobank

According to Rabobank analysts, in South Africa, the central bank is widely expected to keep its policy rate unchanged at 6.50%.

Key Quotes

“Recent spike in oil prices and the risk that the rand may remain volatile require a cautious approach and limits scope for manoeuvre for the SARB despite the fact that inflation has been within the target band. Global monetary policy easing and sluggish domestic growth are strong arguments in favour of a cut, but without structural reforms the prospects for the South African economy will not improve significantly.”