Reserve Bank will likely keep interest rates steady at next MPC meeting - economist | Fin24
Interest rates are likely to remain unchanged at next month's meeting of the Monetary Policy Committee of the SA Reserve Bank, according to Sanisha Packirisamy, an economist at Momentum Investments.
Packirisamy said the positive downward trajectory in inflation expectations, alongside weaker-than-expected growth, has likely lowered the pressure on the central bank to maintain a tightening bias.This is given the SARB's intention to drive inflation expectations closer to the midpoint of the target band on a sustainable basis, to allow for more room to manoeuvre in the event of external shocks.
"Core underlying inflation has remained muted at 4.3% on average in the past 12 months, in line with the subdued domestic demand."Packirisamy said one of the key drivers of services inflation is rental inflation, which accounts for nearly 17% of the consumer basket. Inflation in this category decreased to 2.7% in March 2019, the lowest reading on record since the major basket re-weighting and methodological changes were incorporated in 2008.
"The SARB has noted the persistent downside surprises in underlying and services inflation measures, but warned it is too early to conclude these changes are structural in nature."Public transport prices were surveyed in March 2019 and recorded a 1.4% increase relative to February. Public transport prices are 10% higher than they were a year ago.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Business Maverick: S. Africa Reserve Bank Says Too Early to Claim Inflation WinSouth Africa’s central bank says it’s premature to claim victory in the war against inflation and sees price growth stabilizing at 4.5 percent only by the end of 2021.
Read more »
If load-shedding persists, SA will see almost no growth, Reserve Bank warnsThe depth and damage wrought by state capture has proven to be worse than thought, says the Bank, with power supply being the tipping point
Read more »
Blackouts could slash 125k jobs, cut growth to zero: Reserve BankSA's power cuts could bring economic growth for the year close to zero if they continue at the same severity seen in March, the Reserve Bank said.
Read more »
SA blackouts may cut growth close to zero, Reserve Bank saysSouth Africa’s power cuts could bring economic growth for the year close to zero if they continue at the same severity seen in March, the central bank said.
Read more »
Blackouts could slash 125k jobs, cut growth to zero: Reserve BankSA's power cuts could bring economic growth for the year close to zero if they continue at the same severity seen in March, the Reserve Bank said.
Read more »
Nothing would be gained by nationalising the Reserve Bank - Thabo Mbeki | IOL NewsFormer president ThaboMbeki has warned about the ANC’s call for the nationalisation of the SA Reserve Bank, saying it would not result in any material achievement.
Read more »
Nationalising Reserve Bank pointless, says Thabo MbekiFormer president says the move would change nothing as it is government that drives policies
Read more »
Nationalising Reserve Bank pointless, says Thabo MbekiFormer president says the move would change nothing as it is government that drives policies
Read more »
Kganyago again slams Public Protector in speech on central bank independenceSouth African Reserve Bank governor Lesetja Kganyago has again hit out at Public Protector Busisiwe Mkhwebane for displaying a “flagrant disregard of the law” when she ordered the Constitution be changed in 2017 to alter the mandate of the Reserve Bank.
Read more »