South Africa is nearing the end of its rate hiking cycle, says Old Mutual Investment Group's chief economist, Johann Els.
Els expects that the repo rate will not be hiked beyond 6.5% - where rates stood in January 2020, before steep rate cuts. The repo rate is currently at 5.5%.
While he doesn't think that the Bank has set a hard line not to pass those pre-pandemic interest rates, Els expects inflation to reach a peak of between 7.6% and 7.8% in July. He expects it will slowly ease off after that as global oil and food prices have already started to fall.