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South Africa, in Grip of Recession, May Consider Rate Increase

  • Forward-rate agreements show small chance of rate hike
  • South Africa fell into a recession in the second quarter
Updated on

South African policy makers may be about to consider whether to follow counterparts from Russia to Turkey and raise interest rates -- even when the country is battling a recession.

Investors and economists are divided on the chances that officials will respond to emerging-market turmoil with the country’s first upward move in borrowing costs since 2016. While forward-rate agreements suggest there’s a small chance of an increase on Thursday, just three of 19 economists in a Bloomberg survey expect that.