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Load-shedding, inflation key to repo rate decision – economist─── 09:42 Thu, 22 Sep 2022
An economist says inflation and load-shedding are likely high on the agenda of the South African Reserve Bank's Monetary Policy Committee meeting to decide on the latest repo rate adjustment.
The two-day sitting concludes on Thursday, with the Reserve Bank governor announcing the decision in the afternoon. Another hike is expected.
Lead economist with audit firm KPMG, Frank Blackmore, has shared his pre-announcement analysis.
"Of the goods that have increased and the inflationary basket over time mostly fuel, including electricity, as well as food have been the major components driving this inflation."
"Load-shedding is a factor, gas prime generators also use oil or diesel, and the price of that has pushed inflation globally and therefore you get a larger component of that cost coming into the prices that we are seeing."
[WATCH] #Moneyweb will live stream the @SAReserveBank's MPC statement and repo rate decision today at 15h00.
— Moneyweb News (@Moneyweb) September 22, 2022
Click the link below to watch: https://t.co/QfYOLAGt2m#SARBMPCSEP22 #Sarb #InterestRate
Meanwhile, Solidarity is calling on the Reserve Bank to exercise sensitivity when adjusting the repo rate.
The trade union's Theuns du Buisson says South Africans are already financially burdened.
"Our opinion is increasing the repo rate or the national interest rate would not have the desired effect and it would much rather put further strain on South African consumers."
