A timid exit from recession in the second quarter of this year and falling inflation may spur the Reserve Bank to cut interest rates later this month for the second time in five years. The economy slipped into recession after contracting 0.7% in the first three months of 2017, but slight improvements in the manufacturing, utilities, retail and wholesale trade and mining sectors since then would have led to growth of around 2%, economists said this week. This is despite a very weak rebound expected in the transport and communication sector, negligible improvement in the finance, real estate and business services sector, and only marginal expansion for the personal services sector. StatsSA will publish GDP figures for the second quarter on Tuesday. Besides the improved inflation outlook, the "deteriorated growth outlook" was another reason the Reserve Bank gave for cutting interest rates by 25 basis points in July. This week, speaking at an Alexander Forbes event, Reserve Bank deputy ...
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