Citi-Goldman Split on S. Africa Rates Highlights Tricky Call

Economists are divided over whether the South African Reserve Bank will keep interest rates unchanged or extend its current easing cycle when policymakers meet for the first time since deciding to anchor inflation at 3%.

While lower-than-expected inflation and easing expectations support the case for a rate cut, the central bank’s July decision to anchor inflation at the bottom of its 3%–to-6% target range — rather than the midpoint — has made the call more complex.