Latest US personal consumption expenditure (PCE) data showed a moderation in growth to 2.4% from around 3% late last year, indicating inflation is being brought under control. We are optimistic inflation will continue to ease towards the US Fed’s 2% target, which would prompt an interest rate cut – by the earliest, around June.

In SA, growth in private sector credit demand has slowed to 3.2%, largely because banks are becoming more careful in granting credit to households. Mortgage growth is only about 3%, while last year house prices nationally increased by only 1-2% on average, showing a domestic housing market that is likely to remain under pressure until interest rates are cut.