Stars aligning for September interest rate cut

On the Money Minute on 947, Zinathi Gquma talks about the latest interest rate trends.

The South African Reserve Bank (SARB) has no reason to hold off on interest rate cuts.

This is after inflation dropped to 4,6% from 5,1% in July, the lowest level it has been in three years.

“Inflation has been stuck between the range of 5% to 6% and that’s good because you know the SARB targets inflation at a range of 3% to 6%. They are comfortable when its at the mid-point of that, which is 4.5%.” 

- Zinathi Gquma, Money Minute

The conversation has thus moved on from if interest rates would be cut, to how much they will be cut by, says Gquma.

Experts forecast a cut of 25 to 50 basis points. 

SARB’s Monetary Policy Committee will meet on 19 September to confirm. 

Scroll up to the audio player to listen to the discussion