Reserve Bank to hold early meeting

The Reserve Bank will meet next week on interest rates, more than three weeks ahead of schedule, cementing the case for an early rate cut.

The Reserve Bank will meet next week on interest rates, more than three weeks ahead of schedule, cementing the case for an early rate cut.

The bank said it had changed its meeting dates for the rest of 2009, with the monetary policy committee meeting every month, except for July. It previously met every two months.

Analysts said the meeting would likely cut the repo rate aggressively.

"That's a clear indication that some decision is going to be taken. My money would be on a 1percent cut in rates," Citadel economist Dave Mohr said.

The Reserve Bank needs to adjust and examine its response to a dramatic change in global economic conditions, Reserve Bank Governor Tito Mboweni said.

"Global conditions have changed dramatically and this requires of all of us in South Africa and elsewhere to examine the course of action which might be required." - Reuters

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