Load shedding, inflation key to repo rate decision – economist
An economist says inflation and load shedding is likely high on the agenda of the SA's 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."
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"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."
Meanwhile, Solidarity's 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 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."
