The South African Reserve Bank (SARB) Monetary Policy Committee (MPC) will be meeting next week to decide on its next move on interest rates, with economists divided between a hold and a cut.
While most experts anticipate the central bank to remain cautious and vote to hold rates at current levels, they also agree that it won’t be a unanimous vote.
A growing minority believe that the bank will realise that there is room to cut rates further—especially given the latest inflation data—and could deliver a small cut.
According to the Bureau for Economic Research (BER), there are three ways to approach the vote: what the Reserve Bank could do, what it should do and what it will do.
The answers are not necessarily the same.
“When thinking about SARB decisions in recent months, we have started to talk about what the SARB is likely to do,” it said.
“While
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