A net 67% now expect the first repo rate cut in Q3 2024<\/strong>, with the remaining 33% expecting a cut in Q2 2024. <\/p>\n\n\n\n In January, the figures were inversed, with a net 67% expecting the first rate cut in Q2 2024. <\/p>\n\n\n However, there are still some glimmers of hope for South Africa among investors.<\/p>\n\n\n\n A net 38% of those surveyed said they expect the economy to get “a little stronger.” This is an improvement from the 13% and 29% seen in December and January, respectively. <\/p>\n\n\n\n In addition, a higher net (75%) managers expect core inflation to be “‘slightly lower” – an improvement from the 50% in January. <\/p>\n\n\n\n The views on interest rates will be tough news to bear, however. The repo rate has been at an almost 15-year high of 8.25% since May. <\/p>\n\n\n\n Despite fears that a US interest rate cut could be delayed until the end of the year due to the US presidential elections, Investec Chief Economist Annabel Bishop<\/a> said that the US and South Africa will likely start cutting rates in the middle of the year. <\/p>\n\n\n\n South Africa is, however, expected to only cut rates after the USA, when inflation returns to the SARB’s target midpoint of 4.5%. <\/p>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/03\/image-4.png\")
<\/a><\/figure><\/div>\n\n\nCore Inflation over the next year<\/strong><\/td> Dec<\/strong><\/td> Jan<\/strong><\/td> Feb<\/strong><\/td><\/tr> A lot higher<\/td> 0%<\/td> 0%<\/td> 0%<\/td><\/tr> Slightly higher<\/td> 7%<\/td> 7%<\/td> 6%<\/td><\/tr> Unchanged<\/td> 13%<\/td> 36%<\/td> 13%<\/td><\/tr> Slightly lower<\/td> 73%<\/td> 57%<\/td> 81%<\/td><\/tr> A lot lower<\/td> 7%<\/td> 0%<\/td> 0%<\/td><\/tr> Don’t know<\/td> 0%<\/td> 0%<\/td> 0%<\/td><\/tr> Net higher\/lower<\/strong><\/td> -73%<\/td> -50%<\/td> -75%<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n