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The monetary policy committee (MPC) at the South African Reserve Bank (SARB) continued its aggressive tightening approach by raising the policy rate by an additional 50 basis points, bringing the repo rate to 8.25%. This decision was unanimously supported by all committee members.
Consumer price inflation increased by 6.8% year-on-year in April 2023, which was a decline from the 7.1% year-on-year print in March.
Headline inflation recorded 6.8% y/y in April, down from 7.1% in March, and 0.4% m/m. This outcome was slightly lower than our and the consensus expectation of 7.0%. Core items contributed 0.3ppt to monthly headline inflation, while food and non-alcoholic beverages (NAB) added 0.1ppt.
Following the Rand’s sharp fall this month, a firm interest rate hike of 50bp is widely anticipated following this week’s Reserve Bank Monetary Policy Committee (MPC) meeting.
If you had to hazard a guess, when do you reckon the COFI Bill will be signed into law?