Roodt told Smart Money with Alishia Seckam<\/a><\/strong> that despite additional headwinds, the Reserve Bank still has room to cut rates by another 25 basis points.<\/p>\n\n\n\n\u201cIf we are lucky, we may see the Reserve Bank cut rates by another 50 basis points in 2025,\u201d he said.<\/p>\n\n\n\n
\u201cIn the next meeting in March, I believe the MPC will sit on their hands and not do anything. However, after that, two cuts of 25 basis points each are possible.\u201d<\/p>\n\n\n\n
The reason for Roodt\u2019s optimism is that interest rates are contained. \u201cMy average inflation expectation for 2025 is less than 4.5%,\u201d he said.<\/p>\n\n\n\n
He added that even better news than the decrease in inflation is that inflation expectations have come down substantially.<\/p>\n\n\n\n
\u201cSouth Africans have been struggling for a few years. However, at long last, we are seeing inflation expectations decline,\u201d he said.<\/p>\n\n\n\n
\u201cThe decline in inflation expectations will allow the SA Reserve Bank to further reduce interest rates.\u201d<\/p>\n\n\n\n
The lower interest rates will support economic growth. However, it will not be enough to drive growth to where it should be.<\/p>\n\n\n\n
Roodt told Alishia Seckam that predicting South Africa\u2019s economic growth during the Trump Presidency was difficult.<\/p>\n\n\n\n
If one puts an unexpected decision from the US President aside, Roodt expects the South African economy to grow by around 1.5%.<\/p>\n\n\n\n
\u201cThe growth for 2025 is anticipated to be slightly better than 2024, but it is definitely not good enough,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"
Renowned economist Dawie Roodt said the South African Reserve Bank has room for more interest rate cuts in 2025, which is good news for South African households.<\/p>\n","protected":false},"author":10,"featured_media":713044,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[1459,21649,20457],"class_list":["post-810543","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-dawie-roodt","tag-monetary-policy-committee-mpc","tag-south-african-reserve-bank-sarb"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/810543","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=810543"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/810543\/revisions"}],"predecessor-version":[{"id":810544,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/810543\/revisions\/810544"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/713044"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=810543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=810543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=810543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}