23 Mar 2015
SARB to refrain from easing on Thursday – TDS
FXStreet (Edinburgh) - Paul Fage, Strategist at TD Securities, expects the SARB to stay on the sidelines on Thursday’s meeting.
Key Quotes
“At Thursday’s (26 March) MPC meeting, we expect the South African Reserve Bank (SARB) to keep its policy rate, the repo rate, on hold at 5.75%, in line with the unanimous consensus expectation”.
“Looking further forward, we are of the view that the SARB will keep its policy rate on hold for the rest of this year. However, in response to Fed tightening we see the SARB hiking rates next year, starting in Q1 2016”.
“The South Africa FRA curve implies little chance of a rate cut at Thursday’s meeting. Thereafter, it implies an increasing probability of rate hikes, with about 20 bps of hikes expected by the September meeting and about 50 bps by January 2016”.
Key Quotes
“At Thursday’s (26 March) MPC meeting, we expect the South African Reserve Bank (SARB) to keep its policy rate, the repo rate, on hold at 5.75%, in line with the unanimous consensus expectation”.
“Looking further forward, we are of the view that the SARB will keep its policy rate on hold for the rest of this year. However, in response to Fed tightening we see the SARB hiking rates next year, starting in Q1 2016”.
“The South Africa FRA curve implies little chance of a rate cut at Thursday’s meeting. Thereafter, it implies an increasing probability of rate hikes, with about 20 bps of hikes expected by the September meeting and about 50 bps by January 2016”.