Will Sarb cut the interest rate again this week?

The South African Reserve Bank's monetary policy committee will meet over the next few days.

FILE: SA Reserve Bank Governor Lesetja Kganyago. Picture: AFP

CAPE TOWN - Some economists believe consumers could be in for another interest rate cut later this week.

The South African Reserve Bank's (Sarb) monetary policy committee will meet over the next few days.

In July, the central bank surprised most experts by announcing the first rate cut in five years.

The central bank uses the repo rate to keep inflation in check. And the inflation rate is now comfortably within the target of between 3% and 6%.

Economist Kamilla Kaplan says that bolsters Sarb’s argument for another cut this week.

“We expect the reserve bank to reduce interest rates further by another 25 basis points to 650.”

Economist Thabi Leoka agrees and she believes that it's quite possible there'll be more cuts still to come.

“They do have a shallow cycle so I expect them to cut again in November and perhaps in the first quarter next year.”

Sarb will make its announcement on Thursday.

(Edited by Shimoney Regter)