Data released on Wednesday show that CPI inflation in South Africa rose to 4.4% y/y in April, which will continue to weigh on consumer spending.
Other sectors were stronger, but Capital Economics expects GDP growth slipped to around 2.0% q/q saar, down from 4.1% in Q4 2014.
South Africa's Monetary Policy Committee will probably elect to retain the repo rate at 5.75% today. Rising inflation, however, makes a 25bp hike likely over the coming three months or so.