SARB to hold rates steady - poll

There is also agreement that inflation will peak in December and then slow within its target range of three to 6% next year.

FILE: Reserve Bank Governor Lesetja Kganyago. Picture: Reinart Toerien/EWN

JOHANNESBURG – A Reuters poll of economists has found there is general consensus that the South African Reserve Bank will hold the repo rate unchanged at 7%t next week.

There is also agreement that inflation will peak in December and then slow within its target range of three to 6% next year.

The poll off 33 economists found that, all but one believed that the reserve bank will keep its rates unchanged.
The drought was also seen as a major factor affecting inflation, with one economist citing that if it was broken this would save on importing maize, thereby cutting food costs.

There was also agreement that economic growth is expected to remain subdued at point-four percent in line with the reserve bank's forecast - followed by 1.1% next year.

But the group agreed say that, as with recent years, South Africa’s economic prospects will also depend on how the world economy performs.

(Edited by Masechaba Sefularo)