http://www.fin24.com/Economy/hike-or-hold-hard-to-call-sarbs-next-rates-move-20160717

But in general, he sees the repo rate remaining unchanged at 7% this time around and certainly rate cuts nowhere close. This is because he reckons the MPC median mode of pausing where possible while still being in a hike cycle remains.

He explains that the uncertainty on the decision is "acute" given that consumer inflation data will be released only shortly before the rate announcement.

Nomura expects inflation to tick up marginally, but pointed out that inflation expectations have been more stable at around the top of the target.

Herman van Papendorp (head of investment research and asset allocation) and Sanisha Packirisamy (economist) of Momentum Investments expect a further hike of 25 basis points by the MPC before the end of the year.

"We anticipate further modest tightening given Sarb’s view that exploiting a short-term trade-off between growth and inflation - lower interest rates to accommodate growth in spite of rising inflationary pressures - will be less beneficial in the long run," they explained.

The MPC's latest inflation forecast points to a slightly lower 5.9% forecast in 2016 (previously 6.2%), while their projections for 2017 and 2018 have remained intact at 5.7% and 5.2%, respectively.

The Sarb’s decision to hold rates steady at the previous MPC meeting was in line with previous comments that monetary policy tightening was expected to proceed at a moderate pace, according to Van Papendorp and Packirisamy.

Citi Research expects an unchanged repo rate decision next week. This comes off the back of its recently reduced inflation outlook given that it now expects the upward inflationary factors this year to unwind more quickly in 2017, according to economist Gina Schoeman.

-news24.com