South Africa Primed for Consumer-Led Rebound as Inflation Cools
- Cooler inflation hardens rate-cut bets that could aid consumer
- Business sentiment up since new coalition government formed
A softer inflation reading would support consumers by boosting spending power and encouraging the central bank to start lowering South Africa’s painfully high interest rates next month.
Photographer: Dwayne Senior/BloombergThis article is for subscribers only.
South Africa’s economy probably avoided tipping into a recession in the second quarter, handing the country’s new coalition government a much-needed base to build on over the rest of the year.
Softer-than-expected inflation last month buoyed hopes for interest-rate cuts that will be welcomed by consumers, who have endured high borrowing costs for years, while delivering the latest in a string of modestly upbeat readings on Africa’s most-industrialized economy.