The SARB’s biannual Monetary Policy Review published this week, which showed less confidence in South Africa’s disinflation trend and reiterated the desire to move to a lower inflation target, suggests that policymakers are not likely to cut interest rates at all this year. We now forecast the first cut to come in 2025. Meanwhile, Angola became the latest SSA economy to cut its fuel subsidies which is a positive given the fiscal strains that these subsidies bring. But the experience from elsewhere suggests that it will be politically challenging to avoid at least a partial reversal.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services