Three important data due out this week is expected to shine the spotlight on the current state of the economy.
Stats SA will release April’s CPI data on Wednesday and the South African Reserve Bank will announce the interest rate decision on Thursday. S&P Global will share its rating review on Friday
The S&P Global Ratings review is expected this Friday after the market closes. NKC economics expects that the agency will decide to keep the sovereign credit rating unchanged.
S&P currently rates South Africa’s long-term foreign and local currency sovereign credit ratings at BB and BB+ respectively, while the outlook for both ratings is stable.
The Monetary Policy Committee begins its meeting to decide on the interest rates from Tuesday. Most analysts expect an unchanged monetary policy stance.
The repo rate is currently at 6.75%.
NKC Economics’ Elize Kruger says she expects inflation to be unchanged for April at 4.5 %. She says while April is a fairly low survey month, the main driver will be further hefty fuel price increases.