3 things that will decide South Africa’s next big interest rate hike in July

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3 things that will decide South Africa’s next big interest rate hike in July
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South Africa’s higher-than-expected inflation data in June points to a further interest rate hike in July, but there is still some uncertainty about how much the central bank will hike by.

The South African Reserve Bank is now forecast to follow up the 50bps hike in May with another 50bps rise in July. Previously, a 25bps increase was pencilled in for July, said economists from the Bureau for Economic Research in a research note on Monday .

“Why not a 75bps SARB hike in July in ‘sympathy’ with the Fed and central banks in countries like Chile, Mexico and Poland that have all recently upped the ante with moves of 75bps?”

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