South Africa is heading for a big interest rate hike.
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South Africa is likely to see another interest rate hike next week, although the increase could be larger than previously forecast, say economists at the Bureau for Economic Research (BER).
The forecast comes after the US Federal Reserve hiked its policy rate by 50 basis points (bps) last week, which was the biggest increase in more than twenty years – although some market players had bet on a 75bps hike this month.
Going forward, Fed chair Jerome Powell signalled that 50bps increases were also likely at the next two meetings (June and July), with a probable return to 25bps increment increases from September.
The forecast comes after the US Federal Reserve hiked its policy rate by 50 basis points (bps) last week, which was the biggest increase in more than twenty years – although some market players had bet on a 75bps hike this month.
Going forward, Fed chair Jerome Powell signalled that 50bps increases were also likely at the next two meetings (June and July), with a probable return to 25bps increment increases from September.
