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Consumer inflation eases to 5.4% supporting case to pause interest rate hike
The Reserve Bank is still widely expected to hike rates by a quarter of a percentage point on Thursday.
JOHANNESBURG - Consumer inflation has eased to 5.4% supporting the case for the Reserve Bank to pause its interest rate hike cycle.
The June figure is significantly lower than the 6.3% recorded in May.
Interest rates | Godongwana will not be meeting with Reserve Bank
The Reserve Bank is still widely expected to hike rates by a quarter of a percentage point on Thursday despite the inflation rate falling below the central bank’s target ceiling for the first time in 14 months.
It was driven largely by lower food costs.
Meanwhile, Finance Minister Enoch Godongwana says he is not talking to the Reserve Bank about ways to address the rising cost of living.
Talking to Bloomberg TV in India, he said the central bank, by the Constitution, is independent.
His remarks follow a call by the ANC's NEC for Godongwana to urgently speak to Governor Lesetja Kganyago, to consider other options rather than continuing with interest rate hikes.