THE South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) is set to hike interest rates on Thursday (22 September) this week in an attempt to support the rand and control inflationary forces, but economists differ in expectations on how much.
A recent survey conducted by the international comparison website Finder revealed that half of the economists polled (50%) expect an increase of 50 basis points (bps) at the September meeting.
A further 44% expect it will rise as much as 75bps, and only one respondent predicts a 25bps increase.
Despite all expecting varying degrees of action by the SARB, the majority believe that the increase should only be 50bps.
The economists polled in the survey included experts from the Bureau of Economic Research, Standard Bank, Old Mutual, Wits Business School, Investec and more.
Jee-A van der Linde, an economist from Oxford Economic Africa, said she expects a 50bps hike
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