5 reasons interest rates will not come down (yet)

South Africa's inflation rate has slowed to 5.1% year-on-year in June from 5.4 percent in May, according to data released by Statistics South Africa on Wednesday.

This is within the 3% to 6% target set by the South African Reserve Bank (Sarb).

Despite this, says FNB Economist Mamello Matinkica, the Sarb will not cut rates.

Here’s why:

  • Risks to the rand remain high

  • Monetary policy tightening in developed markets

  • Long-term inflation remains high

  • Wages and salaries could surprise on the upside

  • Core inflation has not dropped significantly

The Money Show’s Bruce Whitfield interviewed Matinkica.

For more detail; listen to the interview in the audio below.

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This article first appeared on 702 : 5 reasons interest rates will not come down (yet)


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