S. Africa May Be Coming to End of Rate-Hike Cycle

The transcript discusses the current state of monetary policy, focusing on whether the rate increase cycle has ended. It distinguishes between inflation expectations and forecasts, noting the impact of political and policy uncertainties on inflation. The discussion clarifies that reaching the end of the rate hiking cycle does not imply the start of a rate cut cycle. The central bank targets inflation, not interest rates, and would consider a rate cut if inflation remains within target despite external shocks.

What was the main focus of the last MPC meeting on March 30th?

• The impact of inflation on GDP

• The end of the rate increase cycle

• The introduction of new monetary policies

• The start of a rate-cutting cycle

How does the central bank measure inflation expectations?

• By analyzing unemployment rates

• Using break-even inflation and other indicators

• Through consumer spending patterns

• Through GDP growth rates

What does reaching the end of the rate hiking cycle imply?

• An increase in inflation rates

• The start of a rate-cutting cycle

• No immediate start of a rate-cutting cycle

• A pause in monetary policy decisions

What are the forecasted inflation rates for the next two years?

• 3.2% and 3.3%

• 5.4% and 5.5%

• 6.0% and 6.1%

• 4.5% and 4.6%

Under what condition might the central bank consider a rate cut?

• If inflation exceeds the target range

• If unemployment rates increase

• If inflation remains within the target range on a sustained basis

• If GDP growth slows down