The South African Reserve Bank’s last meeting of the year is expected to be one of its toughest as the monetary policy committee is confronted by challenges of a rand in free fall and data that point to a withering economy.
Mining production figures out on Thursday showed a shocking decline of almost 10% in the third quarter. It was its second quarter of contraction‚ dragging down gross domestic product growth.
Although that contraction supports the case for unchanged interest rates next week‚ better manufacturing production figures — after a contraction in the second quarter — rising inflation and a weak rand are among data supporting a rate hike.
Poor data make rates a tough call
The South African Reserve Bank’s last meeting of the year is expected to be one of its toughest as the monetary policy committee is confronted by challenges of a rand in free fall and data that point to a withering economy.
Mining production figures out on Thursday showed a shocking decline of almost 10% in the third quarter. It was its second quarter of contraction‚ dragging down gross domestic product growth.
Although that contraction supports the case for unchanged interest rates next week‚ better manufacturing production figures — after a contraction in the second quarter — rising inflation and a weak rand are among data supporting a rate hike.
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