Carol Paton Writer at Large

The SA Reserve Bank has signalled its willingness to drop interest rates, saying inflation outcomes over the past 10 months mean policy has not been as accommodative as it could have been.

In response to questions from Business Day last week, the central bank said that using real interest rates — which strip out the impact of inflation — as a measure, on balance, monetary policy since 2008 had been accommodative of the weak economy “although the degree of accommodation has declined in the past 10 months in particular”.

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