The Reserve Bank will have room to "look through" a breach of the inflation target band and save consumers from an interest rate rise that would hike home loans and vehicle repayments, say economists. Higher food and transport prices led inflation to breach the Reserve Bank's target band of 3% to 6% in September, according to data released by StatsSA on Wednesday. But a firmer rand to the dollar and weaker consumer spending, which was evident in retail sales this week, has strengthened the case for rate hikes to be paused. Reserve Bank governor Lesetja Kganyago indicated this week that the central bank was nearing the end of its hiking cycle. But he said this did not mean rates would be cut as the Reserve Bank wants to see inflation remaining firmly within the target range over a longer period. Tumisho Grater, an economist at Novare, said: "The Reserve Bank is experiencing the classic central banker dilemma: low and slowing growth alongside high and rising inflation." Very weak grow...
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