20210323: All about the SARB this week.
Locally, focus turns to the SARB this week. We expect the MPC to keep the repo rate unchanged at 3.50% given the large output gap and relatively contained inflation. The better-than-expected 4Q20 GDP outcome will likely lead to an upward revision of the SARB’s growth outlook. The SARB is also likely to lift its inflation outlook due to higher fuel prices since the January MPC meeting and NERSA’s announcement allowing Eskom to raise electricity tariffs by 15.6% in FY21/22. See omnystudio.com/listener for privacy information.