Economists and the market now anticipate that the Reserve Bank will hike the repo rate this week, and if not this week, in the next three months. In June 2013 my colleague George Glynos and I outlined ETM Analytics’ interest rate outlook. We wrote that: “Baseline view that repo is hiked 50bp and in the event of a ZAR closer to 11.0000/dlr possibly a second 50bp hike in a short-lived hiking cycle, with rate cuts recommencing perhaps 6-12 months after hikes. In other words, 12-18 months from now repo could easily be 5.00% but with rate hikes and cuts between now and then.” We got quite a bit of flack from the market back in June for putting out this view that rate hikes are on the cards, but it’s nice to see the market has come around to this view now. Download the full report after the link.