The last time the Reserve Bank really surprised the market was a month before the tragic events of Marikana in 2012, with the then governor, Gill Marcus, deciding to cut rates by 50 basis points against all expectations. On the evidence of a slowing economy and despite inflation being in the upper end of the central bank's targeted range, she sought to reduce lending costs in following what's termed "flexible" inflation targeting. Inflation averaged 5.6% that year, and when Marcus stunned interest rate observers it was sitting at 4.9% in July from 5.5% the previous month. The central bank's targeted inflation range is between 3% and 6%. With growth now in a rather precarious position in light of recent weeks' loadshedding, and inflation at its most recent reading sitting at 4.1% - below the mid-point of the range - some commentators have raised the spectre of another surprise cut this week by the Reserve Bank's Monetary Policy Committee as it meets for the second time this year. Fea...
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