By Bhargav Acharya and Sfundo Parakozov
South Africa’s inflation rate was steady at 3.2% year on year in Februarythe statistics agency said on Wednesday, a day before the central bank is expected to pause its rate-cutting cycle.
Economists had forecast annual inflation would pick up slightly to 3.3%, still well below 4.5% – the level the South African Reserve Bank aims for at the middle of its target range.
Analysts polled by Reuters think a rate pause is likely given risks emanating from U.S. President Donald Trump’s tariff war and a deadlock in the ruling coalition over the national budget.
But Wednesday’s lower-than-expected reading means some see the central bank delivering another cut.
“While the decision will be close, we expect policymakers to proceed with another 25-bp (basis point) cut to the repo rate,” David Omojomolo, Africa economist at Capital Economics, said.
Shaun Murison, senior market analyst at IG, said he thought the
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