By Ntsakisi Maswanganyi –
INFLATION continued unabated last month, breaching the 3%-6% target band for the first time since August last year.
Rising inflation increases the possibility of more interest rate hikes, although an increase is not expected when the Reserve Bank’s monetary policy committee (MPC) announces its rates decision on Thursday.
Fourteen economists surveyed by BDlive forecast no change to interest rates.
They believe that a firmer rand which, for now, slightly improves the inflation outlook for next year, and concerns over the effect higher interest rates could have on South Africa’s weak economic growth, will see the MPC leave borrowing rates unchanged.
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