Repo Rate Remains Unchanged
Category Property market overview
The Reserve Bank has decided as expected to leave the repo rate unchanged at 5, 75%, but the bank has voiced concern about Eskom's request for a massive 25% tariff increase.
Reserve Bank Governor, Lesetja Kganyago, says such an increase would pose major upside risks to the inflation outlook.
The ANC recently said it was considering a partial listing of Eskom on the JSE as an alternative to raising cash for the embattled power utility.
The ruling party said it was also concerned about the effect of a massive electricity tariff hike on the economy. With inflation still within the 3,6% target range, some analysts expect the bank to increase the repo rate only later in 2015.
Macro economic analyst at Barclays Africa, Miyelani Maluleke says, "Although we have seen inflation increase to 4,5% after touching a low of 3,9% in February. It remains well below the 3 to 6% target set by the SARB. We think they will only hike in September by 25 basis points when inflation starts to breach the upper limit."
Author: SABC
