Professor Chris Harmse and his team have the following to say: “Economic growth is slowing, the currency is on a declining trend, inflation is increasing and interest rates are set to increase further. Though enough cause for pessimism, it also forms part of the economic rebalancing package. The end result will be a sounder economy. Another factor to be watched closely is international developments in interest rates. Should rates increase in the EU and US, it might lead to an outflow of portfolio capital which will contribute to the rand depreciating. Should the depreciation be severe, interest rates might have to be increased beyond August”. Read on