Economist says interest rates likely to remain unchanged

todayNovember 20, 2023 53

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Economist, Dawie Roodt, says the South Africans could breath another sigh of relief soon when the South African Reserve Bank announces its decision on the repo rate on Thursday.

Roodt believes the bank will keep interest rates on hold at at 8.25%, like it did during the last two Monetary Policy Committee (MPC) meetings.

Speaking to Ynews, Roodt said the drop in the fuel prices will also have a positive impact on inflation.

He says a low inflation rate will be a welcome relief to cash-strapped South Africans.

The upcoming MPC meeting comes just weeks after the exit of Deputy Governor, Kuben Naidoo, who resigned last month.

It is still not clear whether he will still be a voting member of the committee this week.

Economic experts say his absence could have implications as the MPC will be left with four members to vote and thus increasing the chances of a possible deadlock.

Without that a fifth vote – Reserve Bank Governor, Lesetja Kganyago, could possibly need to be the deciding vote.

Written by: Nonhlanhla Harris

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