The South African Reserve Bank is expected to hold rates at 6.5 percent at a meeting to be held this week. This is according to an economist at Nedbank Isaac Mashego.
SARB cut the rates by 25 basis points in March this year.
Mashego says there was a promise that there could be another cut in rates but the rand has since come under renewed pressure dropping by 5% to the US dollar, which leaves no room for cuts.
Consumers will just have to balance their finances, I mean times are tough, We have seen a 16% increase in fuel prices and other prices are high also, looking at municipal rates and all.— Isaac Mashego, Economist at Nedbank
It is a bit of a financial pressure on the consumer but the flat rate should help a bit.— Isaac Mashego, Economist at Nedbank
This article first appeared on CapeTalk : Reserve Bank expected to hold rates at 6.5 percent