SARB predicted to keep repo rate on hold
The South African Reserve Bank is likely to keep
the repo rate unchanged before Christmas.
That's the announcement Chief Economist at Econometrix, Azar Jammine, believes the central bank will make on Thursday afternoon after its Monetary Policy Committee concludes its meeting.
Stats SA said on Wednesday that headline consumer inflation rose again to 5.9% in October, bringing it closer to the bank's target range limit of between 3% and 6%.
Jammine says despite this, he expects the repo rate to remain unchanged at 8.25%.
READ: Consumer inflation jumps for third consecutive month
"We are going to see a further big cut of possibly more than a rand a litre at the beginning of December, looking forward to what will happen to inflation for November and December.
“You see, there will be a countervailing, sharp decline in the inflation rate. I'm sure the Reserve Bank has done those calculations as well and will, therefore, realise that the sudden jump in the CPI inflation rate was a temporary aberration, and it does not define a new underlying…trend in inflation."
