ECONOMIC WEEK AHEAD: Eyes glued on Bank’s first MPC gathering
Economists expect a steady repo rate while the inflation outlook will determine Bank governor Lesetja Kganyago’s statement, writes Claire Bisseker
Inflation will be the common thread running through the coming week, with events likely to be dominated by the Reserve Bank’s first monetary policy committee (MPC) meeting of 2017 on Tuesday. The consensus is for the repo rate to be held steady at 7% but for Bank governor Lesetja Kganyago to deliver a moderately hawkish statement in which he emphasises the risks to the inflation outlook. The fact that food price inflation is falling slower than expected, despite the good summer rains, will be among the factors keeping the Bank cautious. Others include the political uncertainties in the global economy, the sustainability of capital flows into emerging markets, and inflation expectations, said BNP Paribas Securities economist Jeffrey Schultz.
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