Consumer price inflation in South Africa has decreased for the fourth consecutive month, reaching 3.8% in September. The drop is largely attributed to lower fuel prices, sparking discussions about the potential for further reductions in the repo rate in November.
Furthermore, Finance Minister Enoch Godongwana is also set to deliver the Medium-Term Budget Policy Statement, adding to the anticipation.
Speaking on VOC’s NewsBeat on Thursday, Associate Professor Heinrich Bohlmann from the University of Pretoria commented on the possibility of a repo rate cut: “I think more so than ever right now. It’s almost a question of whether it will be 25 or 50 basis points down. Unless a disaster strikes in the next couple of weeks, we can expect a rate cut with near certainty.”
Bohlmann added that with inflation decreasing to levels not seen for several months, a 50-basis point reduction is now a strong possibility for the upcoming announcement.
Listen to the full interview below:
VOC News
Photo: Pixabay