Loading

Further interest rate cuts ‘not automatic’

July 27 2012 at 10:49am

Comment on this story

IOL pic may8 gill marcus cpi data

Independent Newspapers

Reserve Bank Governor Gill Marcus. Photo: Leon Nicholas

JOHANNESBURG - The risks to South Africa's moderate inflation outlook are external and further interest rate easing will not be automatic, Reserve Bank Governor Gill Marcus said on Friday.

“Given the subdued domestic economy, the risks to the inflation outlook are mainly of a cost-push nature,” Marcus told reporters.

The bank surprisingly cut interest rates to 5 percent last week, citing concern about the effect of the global economic downturn on Africa's largest economy.

“There has been much speculation as to whether this was a beginning of a renewed interest rate easing cycle. Further monetary easing is not automatic and will be highly dependent on global and domestic developments,” Marcus said. - Reuters


sign up
 
 

Comment Guidelines


  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

     

Join us on

 IOL-Social networks IOL-Social networks IOL-Social networks IOL-Social networks
IOL Travel

Make sure you find the best available airfares with our easy-to-use search engine.

Travel_pic_enw
Sudoku