SA await interest rate announcement
Economists are divided about whether the SA Reserve Bank will increase interest rates today or not.
JOHANNESBURG - Economists appear divided about whether the South African Reserve Bank will hike interest rates today, with predictions ranging from a 50 basis points increase to rates being kept on hold.
Governor Gill Marcus said the economy and the Reserve Bank are now in an interest rate hiking cycle.
Senior economist with Nedbank, Isaac Matshego says he believes interest rates will stay on hold.
"This is against the backdrop of a weak economy and we believe that the Reserve Bank should hold off a bit."
But Renaissance Capital's Thabi Leoka has a very different view.
"We expect the interest rates to increase by 50 basis points."
She says the credibility of the bank is one the line because it has said it would raise rates if inflation continues to rise.