SARB expected to leave interest rate unchanged
An economist has predicted another hold in interest rates due to inflation.
"Without a doubt this outcome will mean that the Reserve Bank will leave the interest rate unchanged and not cut them as a few people have been thinking they would do at some point in time.
More than this it’s likely to mean that interest rates will remain on hold for many more months to come, not just for next week's decision."
Interest rates will come under the spotlight again at the Reserve Bank's Monetary Policy Committee meeting next week.
Economist Azar Jammine has been commenting on the latest consumer inflation figures.
The CPI climbed for the second month in a row to 5.6% in February from 5.3% in January.
Jammine says two key factors helped push up the CPI.
"Fuel prices rose quite strongly in February and then secondly, medical aid rates rose very sharply.
There was also a big increase in the cost of hotels but that wouldn't have had that big of an impact. The increase in medical aid rates caused the inflation rate to rise as much as it did."
ALSO READ
