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Given the unprecedented easing around the world, virtually all analysts agree that the SARB will cut rates at their meeting on Thursday.

Despite reporting relatively few cases, South Africa has not been exempt from the market reaction to coronavirus.

One would expect that the flight to safety and demand for liquidity would pull assets from emerging markets. But South Africa has additional troubles. And their financial system was already in critical condition long before we even heard of COVID-19.

South Africa already had a liquidity problem. Many companies were failing to find funding to maintain operations. This includes the national airline which is also being significantly impacted by the current events as people drastically scale back travel.

With a plethora of major industries already needing financial support, the SARB will be under increased pressure to do something to help the economy.

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