Interest rates cuts back in the picture after inflation dips
JOHANNESBURG – South African consumer inflation dropped in October to its lowest level since February 2011 as fuel prices fell sharply, raising the chances of an interest rate cut by the central bank on Thursday.
Headline consumer inflation slowed to 3.7% year-on-year in October from 4.1% in September while monthly price growth was flat at 0%, Statistics South Africa said on Wednesday, adding that a 4.9% decrease in petrol prices was the main factor in the slowdown. Most other product prices also fell.
The South African Reserve Bank’s policy committee meets for the last time in 2019 on Thursday, and is largely seen keeping benchmark lending rates on hold again at 6.5%, with a weak growth outlook trumping inflation well within the bank’s target of 4.5%.
Source: iol.co.za