South Africa's repo rate is expected to remain unchanged at 7.0 percent when the decision is made on Tuesday next week, according to 10 leading economists surveyed by I-Net Bridge.
However, economists were thrown a curve ball last month when a cut was announced and three of the ten economists in this survey feel that another cut could be on the cards again.
One of the economists to the survey feels that the CPI reading to be released earlier on the day of the repo decision could prove to be a critical turning point.
He feels lower food prices may actually nudge the overall reading closer to the target zone.
"With the repo rate at 7.0 percent, an inflation rate lower than 6.4 percent could give the Reserve Bank scope to trim its repo rate by another 50 basis points to 6.5 percent," said the economist.
However, counterbalancing this minority view are those who feel that the saturation point of monetary stimulus has already been reached and further rate cuts may serve to destabilise price stability in the future.
Concerns remain around above-inflation wage settlements of 7 percent-13 percent and the accelerating strike action that could have costly economic repercussions.
The new level will be announced shortly after 3pm on Tuesday, 22 September.


