Analysts expecting SARB MPC to cut repo rate

JOHANNESBURG - The South African Reserve Bank’s monetary policy committee (MPC) is again under pressure to cut the repo rate as the central bank meets for a second day.

The MPC is currently locked in meetings to decide on policy rates, with an announcement set for later in the week.

The repo rate is currently at a 15-year high of 8.25%, while the prime lending rate sits at 11.75%.

A number of analysts believe the six-member MPC will cut rates on Wednesday.

Economist at Sanlam Investments Patrick Buthelezi predicts a 25-basis-cut.

"Inflation has been surprising on the downside recently and the latest inflation expectation survey by the BER has also continued to drift lower towards the midpoint. The inflation risk in the near term is also assessed to be on the downside."