Grapevine

By News 24
Sep 18, 2024

Inflation sinks below the Reserve Bank's key target

Consumer inflation has dipped below the SA Reserve Bank's key target of 4.5%, cooling to 4.4% in August from 4.6% in July.

This should seal the deal for an interest rate cut on Thursday.

Over the past seven years, the monetary policy committee (MPC) has emphasised that it would like to see inflation close to the 4.5% midpoint of its 3% to 6% target range. It has been adamant that local rates won't be lowered before inflation is anchored around this level.

Economists expect a 25 basis-point cut following a meeting of the MPC on Thursday. Another cut of the same size is expected in November.

August's inflation print is also below the median expectation (4.5%) of 19 economists polled by Bloomberg.