Annual consumer inflation, as announced by Stats SA, were slightly lower than expected, and therefore we expect no increase in the repo rate after tomorrow’s meeting of the South African Reserve Bank’s (SARB) Monetary Policy Committee.
The consumer price index (CPI) increased 4.9% in August, lower than the previous month’s 5.1% and an expected rise of 5.2%.
There is, therefore, no inflationary pressure en no reason for the SARB to increase interest rates.
Now is the time to consolidate, grow and stabilise the economy to further Pres. Cyril Ramaphosa’s stimulus package, which will be difficult when interest rates increase.
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