There is only one major economic release this week, with the SARB set to announce its interest rate decision. Oil prices have eased following positive discussions between the US and Iran regarding the reopening of the Strait of Hormuz, while the local swap market has also come off by an average of 16 bps. Despite this, inflationary pressures from the recent oil price shock are still expected to weigh on the local outlook. As a result, the market is currently pricing in a 25 bps rate hike from the SARB, which would take the repo rate to 7.00%.
