Economists expect the central bank to keep interest rates unchanged as the pace of headline inflation slows further. The most recent Bureau of Economic Research inflation expectations survey indicates there is less pressure currently on the bank to raise interest rates. But political and economic uncertainty at home and abroad are key threats to the inflation outlook. MMI Investment and Savings economist Sanisha Packirisamy expected headline CPI to drop from a reported 6.1% year on year in March to 5.4% year on year in April. She said headline inflation was expected to decline over the course of the year and to dip to below 5% in early 2018 as food inflation slowed and agricultural prices declined. Meat prices would remain elevated. A cap on electricity tariffs would help to moderate inflation. Wandile Sihlobo, head of agribusiness research at the Agricultural Business Chamber, said a bumper maize harvest of 14.5million tons was expected this year, which...
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