Lower inflation could see SARB cut repo rate - economist
The continued easing of
inflation could give the Reserve Bank room to cut the repo rate in November,
offering more relief to consumers.
That is according to economist Elna Moolman, who has been commenting on the latest Consumer Price Index figures.
Inflation slowed for the fourth month in a row to 3.8% in September.
It is the lowest since March 2021.
READ: Consumer inflation drops for fourth consecutive month
Moolman, who works for Standard Bank Group, has predicted another drop in inflation for October due to the recent decrease in fuel prices.
But she warned that this could change in November.
"We have already started seeing a slight increase in oil prices and a slightly weaker currency. So, this should then be the bottom of this inflation cycle,” Moolman said.
"From November, there could be a slight increase in inflation, but general inflation remains quite benign, and inflation should in the medium term still remain around the middle of the Reserve Bank's 3 to 6% target range."
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