The weak economy requires an interest rate cut, but the Reserve Bank's monetary policy committee may be reluctant to announce one when it meets this week. Economists said the bank might not want to be seen to be bowing to political pressure to boost economic growth through lower interest rates. There would be no repeat this year of last year's significant drought-driven increase in food prices, while the stronger rand and the recent drop in fuel prices also helped to ease inflation back into the Reserve Bank's 3%-6% target band, they said. Interest rates were last cut in July 2012. Consumers and investors will know on Thursday whether a new easing cycle has begun. "We have a very weak economy that warrants rate cuts," said Nazmeera Moola, economist at Investec. Economic growth contracted 0.7% in the first quarter of the year, plunging South Africa into a technical recession. Growth is projected to be less than 1% for the year. But global and local political uncertainty, coupled with...
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