Inflation has dipped below the 5% mark for the first time since November 2015, supporting the case for another interest rate cut at the Reserve Bank’s next monetary policy committee meeting, economists say. Headline inflation eased to 4.6% year on year in July, from 5.1% in June, Statistics SA’s consumer price inflation (CPI) data showed on Wednesday. Economists said this boosted their estimations that the Reserve Bank might pencil in another 25 basis point interest rate cut when its monetary policy committee meets again in September. Should this be the case, it would add to the Bank’s surprise 25 basis point interest rate cut at its July committee meeting, which brought the repo rate down to 6.75%. At the time, Bank governor Lesetja Kganyago said: "In this highly uncertain environment, future policy decisions will be dependent on data outcomes and our assessment of ... risks." The rand was little changed against the dollar on Wednesday following the release of CPI numbers. The rand...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.