With inflation heading down towards the mid-point of the target range, most economists expect another 25 basis point cut in interest rates when the Reserve Bank’s monetary policy committee concludes its three-day meeting on Thursday. Statistics SA on Wednesday reported better-than-expected consumer price inflation figures for August, with the inflation rate rising to 4.8% — worse than June’s 4.6% but better than the consensus forecast of 4.9%. The Bank cut rates for the first time in five years at its last meeting in July, in response to a better inflation outlook and weak economic growth. Though the committee makes its rate decisions based on the expected future of inflation rather than on the past, lower-than-expected inflation rates in recent months have provided a lower base for the Bank’s inflation forecast and indicate that underlying inflation pressures are moderating.
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.