Economists back Bank to keep rates steady despite slowing inflation
Annual rate decelerated to 3.1% in move to lockdown level 2, making more goods and services available
30 September 2020 - 11:49
UPDATED 08 November 2020 - 17:32
The slowdown in inflation towards the lower end of the Reserve Bank’s target range as consumers contend with a shrinking economy and uncertainty over incomes is unlikely to shift its stance to keep interest rates on hold, economists say.
Though the muted inflationary environment may weigh in favour of another cut in the repo rate from a record low of 3.5%, some economists believe the Bank is likely to be cautious about adding to a combined three percentage points of reductions in 2020, one of the most aggressive moves in emerging markets...
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