Relief as Marcus keeps rates on hold

Relief as Marcus keeps rates on hold

2011-05-12 15:15

Johannesburg - The Reserve Bank left interest rates on hold on Thursday, in an effort to further stimulate the recovery from recession.

The key repo rate was left unchanged at 5.5%, a move that was widely expected.

However, analysts will look to Reserve Bank governor Gill Marcus' statement for clues on when interest rate hikes will start. While increases from a historic low are seen as inevitable, the market is divided over when the tightening will commence, with some analysts punting increases in the fourth quarter of this year and others early in 2012.

After the March Monetary Policy Committee meeting, Marcus warned that rising fuel and food prices were a threat to South Africa's inflation outlook, with surging global oil prices posing the most risk.

She forecast inflation to average 4.7% in 2011 and 5.7% in 2012. In March consumer inflation rose to 4.1% from 3.7% in February.

  • Jacques - 2011-05-12 15:24


  • Faansie - 2011-05-12 15:33

    One bit of good news

  • The Goose - 2011-05-12 15:53

    nice !

  • Gazza - 2011-05-12 15:59

    This is good news??????? We are living in BS created by the Govts of SA.....Past & Present.... Prime should be as low as 1.5%...... Look at Europe and North America.... Look at South America too......

      tshegofatso.phale - 2011-05-12 17:42

      what is wrong with you?......are u sure u know Economics? of all types leads to growth (most importantly FDI)...for us to be competitive and stop complaining about the Rand we need all types of FDI the most...should the rates be cut any further, the inflation projection for 2012 and beyond will be higher than the max of the 3%-6% band, cubbing away the same growth we thought we were cutting rates in favour of.

  • Francis - 2011-05-12 17:22

    This is wonderful news, really wonderful, I am so excited by this really marvelous news (What news was that again?)

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