South African central bank to stay on hold in July - ING

FXStreet (Łódź) - Dorothee Gasser from ING believes that the South African Reserve Bank will keep its monetary policy unchanged at the July meeting.

Key quotes

"Inflation has put upside risks on the SARB 2014 inflation projections. But the latest output/consumption prints point to downside risks to 2014 GDP growth and 2015 SARB CPI projections in our view."

"Also, our FMCI suggests conditions have tightened thanks to ZAR and yields in July vs May."

"Last, but not least, the more lenient approach by world CB’s in June gives the SARB a bit more leeway."