SARB likely to keep rates unchanged, predicts economist
If you're hoping for some interest rate relief, it's coming but not today.
"For now, I think reserve bank is likely to keep interest rates unchanged but if anything maintains where they are more or less, then we can expect an interest rate cut within the middle of the year or so."
Economist Dawie Roodt there commenting on the Reserve Bank's repo rate announcement later.
Stats SA revealed yesterday that annual consumer inflation eased in December dropping 0.4 percentage points to 5.1 percent as food price hikes slowed.
Roodt explains why the Monetary Policy Committee will want to leave the repo rate unchanged for now at 8.25%.
"The inflation rate has been coming down, the most recent inflation number has been quite positive, but I think the reserve bank is still concerned about inflation expectations. There is always the possibility that some sort of external shock can affect inflation going forward."
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