The message from last week’s monetary policy committee (MPC) meeting is that the Reserve Bank is in no rush to start cutting the repo rate. The first cut may now come later in the year (September rather than July), and the cutting cycle may be shallower than most had been hoping for.

The unanimous decision to keep the repo rate at 8.25% — for the fifth meeting in a row — was hardly a surprise given that CPI has trended higher since December and, at 5.6% for February, remains far above the Bank’s 4.5% target. Yet the economy remains stuck in low gear while business and consumer confidence remains depressed at very low levels...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.