The Reserve Bank is expected to keep the repo rate unchanged at 6.5% when it announces its decision on Thursday afternoon.
Economists believe that while inflation is expected to increase, it will not rise to above the Bank’s 6% upper target range over the next three years.
With the low economic environment and inflation seemingly under control, it’s likely the Monetary Policy Committee will delay hiking rates for as long as possible.
Poor economic growth prospects and the volatile rand will likely be the key themes at the Monetary Policy Committee meeting.
Economists believe interest rates will remain steady for the next 12 months.
This would be great news for consumers who have the odds stacked up against them with the increasing cost of living.
This is on the back of the increasing fuel prices, the higher taxes and weak rand.
Inflation figures surprised on the downside at 4.6% in June.
While its expected inflation will continue an upward trajectory, it should remain within the Reserve Bank’s 3%-6% target bracket.
The Reserve Bank will also likely revise downwards economic growth prospects for 2018.