Why does this matter to me?

The general consensus until recently was that, due to the volatility of global economic developments since the onset of the Trump Administration, the South African Reserve Bank would be reluctant to reduce the repo rate until greater certainty in the global economic landscape emerged. However, with inflation declining more than expected, the Rand strengthening recently, a somewhat more stable global economic environment and hopes for interest rate cuts worldwide, the likelihood of a reduction in the repo rate this week has significantly increased. The Reserve Bank’s commitment to lowering the inflation target is possibly standing in the way. Markets are also anticipating a further rate cut later this year.