National
Repo rate likely not changing: Morgenrood─── THANDI XABA 15:38 Wed, 17 Sep 2014
Bloemfontein - The weakening rand and the effect of inflation is worsening the country’s current accounts deficits.
This comes after the Consumer Price Index (CPI) annual inflation rate reached 6.4 percent for urban areas in August.
PSG economist Amelia Morgenrood says there is general consensus that SA Reserve Bank Governor, Gill Marcus will most likely leave the repo rate unchanged tomorrow.
Morgenrood says the reserve bank has a challenge ahead and unfortunately the CPI figure of 6.4% is a little disappointing.
Yet a positive aspect in the inflation outlook is the oil price going substantially down in the last week or two.
The repo rate increased by 0.25 percent to 5.75 percent in July, and in January by 50 basis points to 5.5 percent.
In March and May the repo rate remained unchanged.
Thandi Xaba/OFM News
Amelia Morgenrood:
