Following last week’s decision by the SA Reserve Bank (SARB) monetary policy committee (MPC) to cut the repo rate by 100 basis points down to 10.5%, it will continue to monitor global and local conditions vigilantly. According to the SARB, inflation is expected to drop to 7.5% in Q1 2009 and to dip to around 5.2% in Q3; however, owing to technical reasons, inflation will temporarily breach 6% in Q1 2010 before moderating to average 5.5% by the end of 2010.
