Economists expect SARB to keep repo rate unchanged this week
The central bank’s monetary policy committee (MPC) is meeting from Tuesday for a final time this year.
JOHANNESBURG - Consumers are not expected to get an early Christmas gift from the South African Reserve Bank (SARB) this week when it announces the latest repo rate.
The central bank’s monetary policy committee (MPC) is meeting from Tuesday for a final time this year.
The five-member committee is expected to deliberate on domestic and international financial data before voting on the repo rate.
Economists are predicting that the reserve bank will keep the repo rate unchanged for a third consecutive time this week.
The monetary policy committee increased borrowing costs to 8.25% in May, pausing in the July and September meetings.
Though inflation looked to ease earlier in the year, it has taken an ugly turn in the last few months.
Subsequently, the MPC has kept a hawkish tone.
Efficient Group economist Dawie Roodt said that cooler petrol and diesel prices would dampen price pressures and keep inflation down.
"I would say inflation is likely to stabilise at these kinds of levels and within a month or two start coming down further."
Nedbank economist, Isaac Matshego, said he doesn’t expect to see cuts to the repo rate before the second quarter of next year.
