Unemployment still on the up-and-up suggests no November rate cut

SA’s unemployment rate has increased marginally to 25.3% in the third quarter from 25.2% in the second. While SA’s economy is recovering, it is not having a positive impact on the labour market. The rise in the unemployment rate is testimony to this, Standard Bank economist, Shireen Darmalingam told FTW Online. With the still weak labour market, the Standard Bank maintains that the repo rate will be kept on hold at 6% in at the next MPC meeting on November 17/18. “However,” Darmalingam added, “we do not rule out rising risks of further policy accommodation. The market is pricing in a 50% probability of a rate cut.”