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GDP growth: Expect rate hike now in January

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(iStock)
(iStock)

Cape Town - Nedbank's economic unit said on Tuesday that it now anticipates one more interest rate hike of 25 basis points by the SA Reserve Bank (Sarb) - in January 2017.

This is in reaction to Statistics SA announcing on Tuesday that South Africa's real gross domestic product (GDP) grew by a seasonally adjusted annualised 3.3% quarter-on-quarter (q-o-q) in the second quarter. However, the economy grew by only 0.6% y-o-y in the second quarter and an equally sluggish 0.3% y-o-y in the first half of this year.

The Nedbank unit pointed out that the GDP improvement in the second quarter was heavily influenced by the first quarter's very low base when a 1.2% contraction was recorded.

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