The Reserve Bank’s Monetary Policy Committee has left the repurchase price unchanged at 6.5%, but says there are red lights flashing.
The Reserve Bank president, Lesetja Kganyago, expects inflation pressure to increase due to the increase in VAT, higher electricity prices coming into force soon and the high oil price.
Meanwhile, the rand is gradually weakening, which means that there will probably be a significant fuel price increase next month. This will cause prices of all goods to rise as most of the products are transported by road after the rail system has been largely decayed.
Read the original article in Afrikaans on Die Vryburger
South Africa Today – South Africa News
