'Expect a repo rate rise within the next year'
Economists predict the Reserve Bank will hike the rate in the second quarter of 2016.
JOHANNESBURG - Economists say the South African Reserve Bank's decision to leave the repo rate unchanged will be a temporary reprieve for consumers, but there's still a chance that the rate will rise in the second quarter of next year.
The announcement comes after Statistics South Africa announced a drop in inflation to 4.6% for August from 5% the previous month.
Nedbank economist Mohammad Nalla says this is nothing new.
"We have had that inflation forecast soften a little, but unfortunately whilst the peak might be a little lower in the first quarter of next year, they have pencilled it at 6.7% now instead of 6.9%, they have revised their expectations for the latter part of next year."