Skip to content Interest Rate Seems Set to Come Down
21 June 2019 – An interest rate cut in July is beginning to look ever more likely as reports continue to filter through about inflation steadying at the mid-point of 3-6%.
Pressure from government is also mounting on the Reserve Bank to adjust the prime lending rate down as it may revitalise the retail and other consumer sectors.
And although inflation has increased slightly from May’s recorded 4.4%, up to 4.5%, economics writer Sunita Menon reports that inflation has more or less remained steady at the midpoint for the past five months.
Therefore the bank seems to be considering announcing a cut next month.
Signs that it could be replacing hawkishness for a more dovish approach to stimulate spending started emerging at the last monetary policy meeting (MPC) in May when at least two of the five MPC members voted for a 25 basis cut in the repo rate.
However the MPC, with a narrow majority, voted to retain the rate unchanged at 6.75%. Source(F&TWeekly) https://bit.ly/2FkphAs