South Africa’s headline inflation rate may have edged up to 3.0% y/y in June, but the further easing of core inflation suggests the SARB should remain unworried about underlying price pressures. Coming alongside a struggling economy, this strengthens the case for the easing cycle to continue. We expect rates to be lowered by more than most currently anticipate by the end of next year.
Join us tomorrow for our Drop-In on South Africa where we will discuss the wider macroeconomic implications if the SARB does lower its inflation target.
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