The likelihood of an interest rate cut on Thursday is low, despite inflation easing in September. While inflation remains comfortably within the target band of 3% to 6%, hopes for another interest rate cut in 2017 are dwindling as fears mount of a credit downgrade on Friday. While most economists expect a credit rating downgrade after the ANC’s elective conference in December, the medium-term budget policy statement renewed concerns that a downgrade would happen on Friday. Moody’s and Fitch took an unfavourable view of Finance Minister Malusi Gigaba’s budget policy statement in October. Investec chief economist Annabel Bishop expected Moody’s, the only ratings agency that has SA one notch above junk status, to downgrade the foreign and local currency front. S&P is expected to follow suit. The consumer price index rose 4.8% year on year in October, after a 5.1% increase the month before. "As things stand, it appears the interest rate cut this year may have been a one-off, rather than...
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