Interest rate cuts on the cards, economist predicts
An interest rate cut is likely for consumers on Thursday, according to economist Dawie Roodt.
"At the moment I am sure the reserve bank will reduce interest rates by at least 25 basis points, but there certainly is a possibility they may decide to reduce interest by as much as 50 basis points,” he said.
The repo rate has been left unchanged at 8.25% since it was adjusted to this figure in May last year.
On Wednesday, Stats SA released data showing the consumer price index (CPI) slowed to 4.4% in August from 4.6 % the previous month.
READ: Consumer inflation dips to 4.4% in August
Roodt, the chief economist at the Efficient Group, said inflationary pressures in the economy are easing.
"The consumer price index is likely to fall further over the next couple of months and that makes it much easier for the reserve bank to start lowering interest rates as well.
"We also have to understand that the Americans are meeting today (Wednesday) and whatever the Americans decide will also impact the decision on the South African Reserve Bank."
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