Reserve Bank will stay tough, even as inflation softens

Despite all indications that high inflation — which has clawed at the pockets of consumers for well over a year now — will start to lessen, we can’t count on interest rates following anytime soon.

This week, the South African Reserve Bank (Sarb) monetary policy committee (MPC) will meet to decide how big an interest rate hike consumers can endure, after inflation hit a 13-year high in July. Economists expect that inflation will have started to retreat from July’s 7.8% peak in August, as the month saw the first decline in the hefty petrol price since May.

However, with central banks around the world remaining hawkish, and inflation expectations driving wage demands higher, experts agree the Sarb is unlikely to let up, as it endeavours to restore the cost of borrowing to its pre-pandemic level. 

Support the journalism that helps you navigate your world

Subscribe to the M&G today for just R30 for the first three months* to gain access to this story and all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

.pmpro_signup_form-hidelabels .pmpro_checkout-field label:first-child {
clip: rect(1px, 1px, 1px, 1px);
position: absolute;
height: 1px;
width: 1px;
overflow: hidden
}

jQuery(document).ready(function() {
jQuery(‘.pmpro_short_selection’).on(‘change’, function() {
var level_id = this.value;
jQuery(“a#mg_discount_link”).attr(“href”, ‘https://mg.co.za/account-confirm-order/?level=’+level_id);
});
});
function mg_before_checkout() {
jQuery(“#password2”).val(jQuery(“#password”).val());
jQuery(“#bconfirmemail”).val(jQuery(“#bemail”).val());
jQuery(‘#pmpro_btn-submit’).css({‘pointer-events’:’none’, ‘cursor’:’not-allowed’});
jQuery(‘#pmpro_btn-submit’).val(‘Please wait…’);
gtag(‘event’, ‘singleSubsbutton’, {‘event_category’: ‘singleSubsbutton’});
}

Digital Subscriber (R 99.00)

Digital & Print – Annual Subscription (R 1,606.50)

Digital – Quarterly (R 30.00)

Have a discount code? Click here

Username

Password

Confirm Password

E-mail Address

Confirm E-mail

Full Name
LEAVE THIS BLANK

Existing subscriber? Login

Looking for another offer?

The post Reserve Bank will stay tough, even as inflation softens appeared first on The Mail & Guardian.

Also Read

Related Articles