Continuation of interest-rate-raising cycle was inevitable
The statement by the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) on 22 September conveyed an understandably hawkish message about the inflation outlook in the economy in the midst of several global and domestic uncertainties.
Prof Raymond Parsons, economist from the Business School of the North-West University (NWU), says the majority view was for a 75 basis-point rise in order to progressively re-anchor inflationary expectations. Significantly, two members of the five-person MPC wanted a 100 basis-point hike.