South Africa’s rate of economic growth is likely to be at about 1.2% this year, according to the Bank of America (BofA). This is unchanged from its previous forecast.
Tatonga Rusike, an analyst at BofA, also said that they believed that the South African Reserve Bank was likely to cut rates in both its next two meetings.
BusinessLive quoted Rusike as saying: “We see the policy rate at 7% by the end of July. The risk when it comes to rate cuts is skewed to more rather than less. Inflation is benign and likely to remain so.”
Rusike flagged global issues as a growth risk for South Africa.
He said: “South Africa remains at risk following rifts with the US related to geopolitical conflicts (Israel-Hamas and Russia-Ukraine) and local economic empowerment laws. Nevertheless, slower US and China growth will drag global growth down, along with South Africa.”