20°C / 22°C
  • Mon
  • 19°C
  • 13°C
  • Tue
  • 16°C
  • 12°C
  • Wed
  • 22°C
  • 13°C
  • Thu
  • 24°C
  • 12°C
  • Fri
  • 22°C
  • 13°C
  • Sat
  • 24°C
  • 13°C
  • Mon
  • 27°C
  • 16°C
  • Tue
  • 26°C
  • 15°C
  • Wed
  • 24°C
  • 15°C
  • Thu
  • 26°C
  • 17°C
  • Fri
  • 24°C
  • 17°C
  • Sat
  • 21°C
  • 13°C
  • Mon
  • 18°C
  • 15°C
  • Tue
  • 18°C
  • 14°C
  • Wed
  • 24°C
  • 14°C
  • Thu
  • 25°C
  • 14°C
  • Fri
  • 24°C
  • 15°C
  • Sat
  • 25°C
  • 14°C
  • Mon
  • 21°C
  • 14°C
  • Tue
  • 19°C
  • 13°C
  • Wed
  • 23°C
  • 13°C
  • Thu
  • 25°C
  • 13°C
  • Fri
  • 23°C
  • 13°C
  • Sat
  • 26°C
  • 14°C
  • Mon
  • 21°C
  • 18°C
  • Tue
  • 22°C
  • 18°C
  • Wed
  • 21°C
  • 18°C
  • Thu
  • 22°C
  • 19°C
  • Fri
  • 23°C
  • 18°C
  • Sat
  • 26°C
  • 18°C
  • Mon
  • 21°C
  • 16°C
  • Tue
  • 22°C
  • 16°C
  • Wed
  • 22°C
  • 16°C
  • Thu
  • 22°C
  • 16°C
  • Fri
  • 24°C
  • 16°C
  • Sat
  • 23°C
  • 18°C
  • Mon
  • 32°C
  • 15°C
  • Tue
  • 31°C
  • 16°C
  • Wed
  • 30°C
  • 17°C
  • Thu
  • 32°C
  • 18°C
  • Fri
  • 31°C
  • 18°C
  • Sat
  • 22°C
  • 12°C
  • Mon
  • 27°C
  • 16°C
  • Tue
  • 27°C
  • 15°C
  • Wed
  • 26°C
  • 17°C
  • Thu
  • 28°C
  • 17°C
  • Fri
  • 23°C
  • 18°C
  • Sat
  • 21°C
  • 12°C
  • Mon
  • 20°C
  • 17°C
  • Tue
  • 20°C
  • 15°C
  • Wed
  • 26°C
  • 15°C
  • Thu
  • 28°C
  • 14°C
  • Fri
  • 25°C
  • 16°C
  • Sat
  • 27°C
  • 15°C
  • Mon
  • 27°C
  • 14°C
  • Tue
  • 22°C
  • 13°C
  • Wed
  • 24°C
  • 13°C
  • Thu
  • 26°C
  • 11°C
  • Fri
  • 25°C
  • 13°C
  • Sat
  • 29°C
  • 15°C
  • Mon
  • 19°C
  • 15°C
  • Tue
  • 18°C
  • 15°C
  • Wed
  • 25°C
  • 15°C
  • Thu
  • 24°C
  • 15°C
  • Fri
  • 20°C
  • 15°C
  • Sat
  • 25°C
  • 14°C
  • Mon
  • 21°C
  • 13°C
  • Tue
  • 22°C
  • 12°C
  • Wed
  • 23°C
  • 15°C
  • Thu
  • 24°C
  • 16°C
  • Fri
  • 27°C
  • 17°C
  • Sat
  • 23°C
  • 15°C

There's room for repo rate cut, some economists say ahead of rates announcement

On Wednesday, Stats SA announced that the headline consumer price index fell to 3.7% in October, down from 4.1% the month before.

Reserve Bank Governor Lesetja Kganyago. Picture: South African Reserve Bank.

JOHANNESBURG - With inflation at its lowest rate in eight years, some economists argue there is room for the South African Reserve Bank (Sarb) to lower the repo rate on Thursday afternoon.

On Wednesday, Stats SA announced that the headline consumer price index fell to 3.7% in October, down from 4.1% the month before.

The monetary policy committee decided to keep the rate unchanged at its last meeting citing factors that could influence inflation.

Inflation has continued its downward move with consumer spending also subdued.

Independent economist Richard Downing said: “In terms of interest rates, I think there is some room at the moment because real interests will be affected by lower inflation.”

Economist Thabi Leoka said while there may be good news for those with debt, not all South Africans will benefit if the repo rate decreases.

"So, for the majority of South Africans, a rate cut may not have a significant impact.”

With the festive season fast approaching, there may be good news on Thursday afternoon for many cash-strapped South Africans, although those with savings may not agree.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus