Big shift in interest rate expectations in South Africa

• South Africa's annual inflation eased to 4.3% in July, strengthening the case for the central bank to keep interest rates on hold.
• The Reserve Bank of South Africa is expected to maintain interest rates at 7% due to improved inflation outlook and confidence in price pressures returning to target levels.
• Forward rate agreements suggest a 70% chance that the benchmark rate will be raised by 25 basis points at the next MPC, but economists are shifting their expectations to a hold.