South Africa holds rates, but signals tightening on the way

The Reserve Bank of South Africa left interest rates on hold at 5.75% today, but GovernorKganyago made it fairly clear that he expects monetary policy to tighten next year. A sluggish domestic economy and the likelihood that inflation will continue to fall in the near-term means that it may be a number of months before interest rates rise. But we still expect rate hikes to be resumed in the first half of 2015.


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