Indebted South Africans could be in for good news on interest rates, many economists predict. They say the South African Reserve Bank's monetary policy committee is expected to cut interest rates by 25 basis points this week following benign consumer inflation data for February. However, the increases in VAT and the fuel levy have complicated the picture. Twelve out of 15 economists surveyed by Bloomberg expect the Reserve Bank to cut the repo rate from the current 6.75%. Goolam Ballim, chief economist at Standard Bank, said the interest rate decision "is a finely poised call, with a slight edge in favour of a 25 basis points rate cut". Notably, the rand was stronger and oil prices had eased since the bank's last meeting, he said. The inflation pressures induced by the tax increases in the budget in February would be transient. But Ballim said he would not be "entirely surprised" if the bank held back at this stage. "There's generous growth tonic from the politically induced mood li...
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