South Africa Rate-Hike Bets Halve to 32 Basis Points as US-Iran Peace Deal Sinks Oil
Updated
Updated · Bloomberg · Jun 15
South Africa Rate-Hike Bets Halve to 32 Basis Points as US-Iran Peace Deal Sinks Oil
3 articles · Updated · Bloomberg · Jun 15
Summary
Forward-rate agreements now price just 15 basis points of South African Reserve Bank tightening at the July 23 meeting, down from 30 basis points a week ago.
Total 2026 tightening bets have also been cut sharply, with traders pricing 32 basis points of hikes this year versus 70 basis points a week earlier.
Oil prices tumbled after a US-Iran peace deal, easing the inflation pressure that had supported expectations for further South African rate increases.