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Graphic for interest rates
A survey released by the Bureau for Economic Research shows that three social groups in the country have lowered their inflation expectations, to average 3.8% percent in 2025 and 4.2% in 2026.
The three social groups, made up of analysts, businesspeople and trade union officials, further anticipate that inflation will average 4.2% over the long term in the next one-to-five-year period.
Independent Economist Elize Kruger says despite the lower inflation expectations, she expects the Reserve Bank to keep the interest rate unchanged this week.
“This is indeed an encouraging sign that perception about inflation being moderate in South Africa is indeed gaining traction. This is important in light of the Reserve Bank’s preference for inflation to be anchored at 3% compared to the previous 4.5%. This will be positive when the Reserve Bank’s Monetary Policy Committee meets this Thursday afternoon. Although a positive, my view is that interest rates will remain unchanged at its current level.”
Inflation on essentials rising faster than wage growth: Report
