Absa expects no interest rate hike until March 2022, but the

Absa expects no interest rate hike until March 2022, but there's no guarantee it will boost lending


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The bank says the SA Reserve Bank has no pressure to tighten its monetary policy.
But the record-low interest rates are still not boosting banks' lending activities.
Absa expects interest rates to remain at current record lows at least for the next 12 months.
Absa, which presented its economic outlook for the second quarter on Wednesday, said the SA Reserve Bank (SARB) has no reason to hike interest rates since there are no inflationary pressures and no pressing fiscal risks.
Absa Group senior economist Peter Worthington said he didn't foresee a repo rate hike until March 2022. The banking group forecasts a 25 basis points hike then, and the prime lending rate to remain below 2019 levels by the end of 2023 at 8.25%.

Related Keywords

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