Goldman Sachs Shifts South Africa Rate Outlook to Two 25bp Hikes in May and July

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According to Goldman Sachs, the investment bank now expects South Africa's central bank to raise rates twice in 2026, marking a reversal from its prior forecast of consecutive rate cuts. The shift reflects heightened inflation risks stemming from escalating tensions in the Middle East. Goldman's chief economist Andrew Masini stated the bank has raised its oil price and inflation forecasts accordingly, projecting rate hikes of 25 basis points each at South Africa's monetary policy meetings in May and July. The possibility of a larger 50 basis point increase remains "relatively low," Masini added.
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