Big changes to how the Reserve Bank determines interest rates

The South African Reserve Bank has announced a significant shift in its approach to setting interest rates, introducing direct feedback from businesses to better gauge economic activity. This new method, which accounts for more variables than existing surveys, will provide policymakers with a more comprehensive understanding of the economy, enabling them to make more informed decisions. As a result, the bank now expects two more interest rate increases over the next six months, following a recent quarter-point hike.