adminAnnual headline consumer price inflation fell to its lower rate since 2011, StatsSA announced yesterday morning. CPI, which measures changes in prices for a range of consumer products, was 3,7 percent in October, down from 4,1 percent in September.
This is within the target range of between 3 percent and 6 percent set by the SA Reserve Bank, and slightly below the expectations of economists. Ahead of yesterday’s announcement, analysts from NKC Economics projected inflation to come in at 3,9 percent.
The rand was unchanged following the announcement, trading at R14,84/$.
TreasuryONE, in a note to clients, said the rate “leaves the door open for an interest rate cut (today),” but said if the SA Reserve Bank will move is another question. The central bank’s governor, Lesetja Kganyago, is set to announce the made outcome of the bank’s monetary policy committee meeting on the repo rate in Pretoria today afternoon. The repo rate is the benchmark interest rate at which the Reserve Bank lends money to other banks. — Fin24.
Online Reporter