BATED BREATH Central bank holds its horses
REASONS: INFLATION, WEAKER RAND, HIGH OIL PRICES
Four members of the monetary policy committee vote no to
model projects an increase in headline inflation, peaking at levels closer to the upper end of the target range.”
“While the global economic outlook is expected to remain broadly favourably over the shortterm, medium-term risks are tilted to the downside due to elevated policy uncertainty. Uncertainty arises from escalating trade tensions and tightening global financial conditions.
Rand
“Since the July MPC, the rand has depreciated by 7.3% against the dollar on a trade weighted basis.
“Tighter global financial conditions and the change in investor sentiment towards emerging markets remain key external risks to the rand and it is likely that the rand among with other emerging market currencies will remain volatile.
Growth
“The Sarb now forecasts growth in 2018 to average 0.7% (down from 1.2% in July). The forecast for 2019 and 2020 is unchanged at 1.9% and 2.0% respectively. “In the medium term, the increase in disposable income is expected to be supportive of consumption expenditure.” – Reuters/Moneyweb