Grapevine

By News 24
Aug 22, 2024

SA real interest rates are at a 18-year high, making the case for a big cut

South Africa’s real interest rate is at the highest level in 18 years, meaning the central bank may consider lowering borrowing costs by 50 basis points at least once this year.

The spread between the South African Reserve Bank’s policy benchmark and the annual inflation rate rose to 365 basis points in July as consumer price growth at 4.6% was the lowest in three years.

That’s the biggest gap since May 2006, when the SARB was commencing an aggressive hiking cycle.