Interest hike expected tomorrow
The Reserve Bank's Monetary Policy Committee is starting its two-day meeting today.
JOHANNESBURG - The South African Reserve Bank Monetary Policy Committee (MPC) is starting its two-day meeting today amid predictions it's going to announce an interest rate hike tomorrow.
The bank has said several times the economy is in a rate-hiking-cycle as inflation needs to be controlled.
But Reserve Bank Governor Gill Marcus says she's worried about the slow growth of the economy.
Peter Attard Montalto, emerging markets economist at London-based Nomura, says the bank can't keep threatening to raise rates and then not act.
"I think waiting with no additional hikes since January is basically pushing the markets and the currency in particular as much as they basically can get away with. They have kind of run out of time for not hiking because they are in a hiking cycle."