Credit Agricole Forecasts SARB Rate to 7.25%

Credit Agricole expects SARB to raise policy rate by 25 basis points in May and another 25 bps in July, reaching 7.25%.
The bank cites accelerating inflation from higher energy prices and a new inflation-targeting regime demanding strong SARB credibility.
Ongoing impeachment proceedings against President Cyril Ramaphosa could weaken macro narrative, prompting further rate hikes, the note warns.
If SARB fails to hike, the rand may depreciate as markets already price in increases, according to the note.