The South African Reserve Bank is set to hike interest rates over the coming months to shore up the currency and counter above-target inflation, but this will hit household spending. Based on a few assumptions, we think our forecast for a 125bp increase in the repo rate by the end of next year could translate into a slowdown in consumption growth to around 1% y/y.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services