26 Mar 2015
SARB tilted to the hawkish side – TDS
FXStreet (Edinburgh) - Despite the recent ‘on-hold’ stance from the SARB, Strategist Paul Fage at TD Securities noted the hawkish tone from the subsequent statement.
Key Quotes
“Today, in line with our and the unanimous consensus expectation, the South African Reserve Bank (SARB) kept its policy rate, the repo rate, on hold at 5.75%”.
“The MPC statement was more hawkish than January’s, stating that the inflation rate has probably bottomed out and revising inflation forecasts higher for this year and next”.
“We continue to expect the SARB to remain on hold for the rest of this year”.
“Although we expect the Fed to start hiking In September of this year, we think the SARB will not feel that they will have to respond until Q1 2016, as a result of rand weakness”.
“However, we think that today’s MPC statement increases the risks that the SARB will have to hike rates sooner than we expect”.
Key Quotes
“Today, in line with our and the unanimous consensus expectation, the South African Reserve Bank (SARB) kept its policy rate, the repo rate, on hold at 5.75%”.
“The MPC statement was more hawkish than January’s, stating that the inflation rate has probably bottomed out and revising inflation forecasts higher for this year and next”.
“We continue to expect the SARB to remain on hold for the rest of this year”.
“Although we expect the Fed to start hiking In September of this year, we think the SARB will not feel that they will have to respond until Q1 2016, as a result of rand weakness”.
“However, we think that today’s MPC statement increases the risks that the SARB will have to hike rates sooner than we expect”.