SA interest rates could see biggest hike since 2016 this week.

We expect the SA Reserve Bank (SARB) to hike its policy rate by 50 basis points – its largest hike since January 2016 – to 4.75% on Thursday. While high levels of uncertainty and a weak South African economy suggest that the decision is unlikely to be unanimous, we expect a stronger majority (4:1) than before to be in favour of front-loading hikes. The SARB is unlikely to make large adjustments to its growth or output gap estimates presented in its March forecasts, although it could revise down slightly its 2.0% 2022 GDP growth forecast in response to the April floods in KwaZulu-Natal and resultant damage to infrastructure and port delays. <a href="https://kaya959.co.za">Kaya 959</a>