S. Africa to Hold Repo Rate

South Africa’s Reserve Bank is expected to leave interest rates unchanged at its July 20 meeting, according to a Reuters poll released late Monday, but economists expect a dovish statement as the bank gets closer to its easing cycle, Reuters reported. Twenty-four of 27 economists said the Reserve Bank will hold rates at 7% on Thursday. Two predicted a 25-basis- point cut and one expects the repo rate to be cut by half a percent. Economic growth in South Africa will be weaker this year after the country slipped into recession in the first quarter, and with inflation easing an interest rate cut is expected in the first quarter of next year. “While our consumer price index view indicates that the SARB has room to ease rates from as early as next week, it will first look to change its inflation rates narrative before pulling the trigger,” said Jeffrey Schultz, an economist at BNP Paribas.