Policymakers in South Africa kept interest rates on hold today, but the governor’s statement took a notably more hawkish tone that seemingly paved the way for rate hikes at the next meeting in May. It is worth noting that Governor Lesetja Kganyago has shifted his emphasis several times since taking up his position last year; the January statement was very dovish. Even so, there seems to have been a demonstrable shift towards tighter policy; we have pencilled in a 25bp hike in May, to 6.0%.
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