The Bank of America (BofA) has said that it expects the South African Reserve Bank (SARB) to start cutting interest rates soon.
It expected the central bank to cut interest rates by 25 basis points at each of its next four Monetary Policy Committee (MPC) meetings.
It also said that it expected the US Federal Reserve to begin cutting rates in December.
It had initially said that it expected rates to begin coming down only in December, but at the last MPC meeting, two of the six members had pushed for a cut in interest rates.
In addition, BofA said that in a survey of fund managers, some 88% of participants said they would be “overweight” on South African equities over the next year, as the domestic economy looks likely to improve, with the decline in loadshedding and investor confidence boosted through the formation of the Government of National Unity.