Tuesday, January 19, 2010

Reserve Bank could still cut lending rate

By Khanyisa Tabata
19 January 2010


A leading economist says there is still a possibility that the South African Reserve Bank could cut lending rates to support the country's economic recovery.

Colen Garrow says that if there is a rate cut, it will probably be in the current quarter.

The SARB's Monetary Policy Committee meets next week for its first meeting of 2010.

However, Garrow says that should the MPC decide not to cut lending rates, the possibility of another cut will become less from the second quarter mainly due to Eskom's proposed tariff hikes which could fuel consumer inflation.

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