Futuregrowth expects Reserve Bank to cut rates towards mid-2024

Futuregrowth Asset Management, one of SA’s biggest institutional bond investors, expects the Reserve Bank to start cutting interest rates towards the middle of next year to help boost demand in the economy.

While the asset manager acknowledges the potential upside risks to the inflation outlook from the El Niño weather pattern and pass-through costs associated with rolling power cuts, it argues underlying demand from consumers is still tepid, as reflected by prevailing core inflation, which strips out volatile energy and food prices…