Interest rate expected to remain unchanged
The Monetary Policy Committee announcement on rates is always so nerve racking, so intimidating – reminding you and I as consumers that we owe someone money and that you may have to pay more on what you owe. That inevitably means you it will take longer to service that debt. Unfortunately, though we cannot run away from that.
The good news today is that economists don’t expect rates to increase. A sigh of relief to many of us who are struggling to make ends meet.
Yesterday Statistics South Africa announced that consumer price inflation (CPI) slowed to 3%-6% target range in August, with headline inflation in line with market expectations at 5.9%, down from July’s 6%.
Other factors that the bank will consider is the effect of the drought on inflation figures as well as rising food prices. Economists also predict the petrol price will rise in October.
But for all intents and purposes, the repo rate is expected to remain unchanged at 7 percent and prime at 10.5 percent.
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