Economist anticipates steep adjustment to repo rate
The economic outlook seems to suggest we're headed for a steeper repo rate adjustment, with some economists anticipating as much as a 75 basis point increase.
South Africans will know on Thursday what the central bank's Monetary Policy Committee has decided.
Following their last sitting in March, the rate was pushed up by 25 basis points.
Economist Graeme Korner says it's likely the latest hike will be no less than 50 points.
READ: Consumer inflation for April unchanged
"If you look at what inflation has done not just in South Africa but globally, it's runaway quite quickly with food prices, a lot of people are talking about prices of sunflower oil and some other basic commodities definitely causing a lot of inflation.
"So that obviously got the reserve bank paying attention, it could be shock and or and we get 75 [points], or it could be 50 [points], but with the guidance that the outlook is deteriorating, the inflation outlook is worsening and for that reason expect more."
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