Sarb expected to keep interest rates on hold

This is despite the fact that inflation is slightly above the target range.

Picture: EWN.

JOHANNESBURG - Most economists are expecting the Reserve Bank's Monetary Policy Committee to keep interest rates on hold during its meeting today, despite the fact that inflation is slightly above the target range.

Yesterday, consumer price inflation figures showed inflation stood at 6.3% year-on-year for the month of March.

But economists say that slowing economic growth and the global environment mean the central bank is likely to keep rates where they are.

Nedbank economist Busisiwe Radebe says the committee will be looking at our weak economy closely.

"In the first quarter of this year, growth was actually down by 1.2%, so they are going to have to balance that with the rising inflation and the best way to do it would be to keep the rates on hold."

LISTEN: How to prepare for rising interest rates.