Economist says room for SARB to cut interest rate
An economist believes the South African Reserve Bank may deliver good news to South Africans when it announces the repo rate on Thursday afternoon.
"There is room for the Reserve Bank to cut interest rates for a number of reasons," says Chief Economist at the Efficient Group, Dawie Roodt.
"So one is that actually inflation is quite low, but another reason is that inflation expectations have been falling recently, and that means that future inflation is likely to be not so much of a problem like what we've experienced in the past."
In March, the bank's Monetary Policy Committee kept the interest rate unchanged at 7.5 per cent.
READ: South Africans can expect repo rate cut - economist
Roodt says he thinks the MPC will reduce interest rates by 25 basis points on Thursday.
"Within a couple of months, they are likely to cut it once again with another 25 basis points."
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