Frontloaded tightening to continue

We expect the MPC to continue frontloading policy tightening with another 50bp hike to the repo rate (to 5.40%) at the conclusion of its upcoming meeting on 5th August. Beyond next week, we think the MPC will squeeze in one more 50bp hike at its meeting in late September before reverting to 25bp increments. In all, our forecast is for the repo rate to rise to 6.40% by Q1 2023, which is a touch more hawkish than the consensus

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