Publications
Partners
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.
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.
