SOUTH AFRICAN CENTRAL BANK’S MONETARY POLICE C’TEE MEETS THIS WEEK AMIDST CALLS FOR RATE CUT

JOHANNESBURG, All eyes are on the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) as it meets this week amidst calls that the central bank cut rates to stimulate economic growth.

Some analysts say that with inflation remaining within the target range of between 3.0 per cent and 6.0 per cent and recent political developments in the ruling party, the African National Congress (ANC), which saw South African Deputy President Cyril Ramaphosa elected the new ANC president last month, there is scope for the MPC to cut rates on Thursday.

However, there are also concerns about the impact of higher oil prices on inflation and this may make the MPC more cautious. The MPC kept rates unchanged throughout 2017 and some analysts expect it to keep interest rates unchanged at its first meeting of 2018.

Meanwhile, the Rand traded sideways Tuesday, fluctuating around 12.3 Rand to the greenback. The local unit had firmed to as high as 12.28 to the US dollar earlier this month on high gold prices and speculation of Ramaphosa replacing President Jacob Zuma as head of State ahead the end of Zuma’s term after the 2019 elections.

Source: NAM NEWS NETWORK