In line with the unanimous consensus, analysts at TD Securities are expecting the SARB to keep its policy rate on hold at 6.75% today in South Africa.
Key Quotes
“There has been mixed news for the MPC since the 17 January meeting. The rand has weakened by about 6% against the US dollar and Brent crude is up 11% in $ terms. The MPC also has to worry about the possible negative impact on the rand of the Moody’s sovereign ratings review on Friday. However, CPI inflation has been well-behaved recently with headline running at 4.1% Y/Y and core at 4.4% in February, almost certainly better than was expected at the January meeting.”
“Furthermore, the MPC will take some comfort from the more dovish stance of the Fed and the ECB. However, the MPC will remain cautious and will probably see the risks to the inflation outlook as being to the upside.”
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