Any analysts who are banking on the Reserve Bank to reverse its stance and cut interest rates anytime soon could be mistaken. Delivering a public lecture at Stellenbosch University on Wednesday evening, Reserve Bank governor Lesetja Kganyago said: “Inflation has not really been sufficiently low to get our high long-term interest rates lower, and this creates an economic cost that weighs more heavily on job creation as time goes on.” Inflation has eased in recent months on lower oil prices and a firmer rand. The Bank’s monetary policy committee kept the repo rate unchanged at 6.75% in February after raising it 25 basis points for the first time in two years in November. The committee will make its next decision on March 28, with analysts expecting an unchanged stance in response to the improved inflation outlook. Some analysts have pencilled in rate cuts towards the end of 2019. “We have indicated that a consistently lower rate in the near term, at the midpoint of our target band, wo...

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