There has been a turnaround in South African interest rate expectations since the start of the Middle East war. Pricing has shifted from expectations for additional easing from the SARB to a materially more hawkish outlook. The chart below illustrates that FRA spreads versus 3-month JIBAR have repriced sharply higher. The broad-based nature of the move highlights how decisively sentiment has shifted, with rate hikes expected with headline inflat…
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