By Thebe Mabanga
On Thursday, Reserve Bank Governor Lesetja Kganyago will announce the Monetary Policy Committee’s (MPC) decision following its last bi-monthly meeting of the year.
The Committee should cut rates by 50 basis points, but don’t be surprised if it keeps them on hold.
Kganyago and his band of conservative merry men and women will seize on the newly unveiled 3% inflation target—brandishing it like a shiny new toy—as the perfect excuse to hold.
This comes after Stats SA reported on Wednesday that October inflation edged up to 3.6%, its highest level in a year but still below the Reuters forecast of 3.7%.
Upward pressure came from housing, utilities, and fuel, while food and non-alcoholic beverages also played a role.
The new lower target is a victory for Kganyago and his market cheerleaders.
After nudging the target to 4.5% almost two years ago, he again leaned on Finance Minister
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