Highlights of Governor Gill Marcus’s Interest Rate Announcement: 27 March 2014

The following are some of the key highlights from the Governor of the Reserve Bank Ms Gill Marcus speech on the interest rate announcement as made on 27 March 2014:

– The country’s economic growth threatened by advanced economies, markets, electricity supply, strikes.

– The outlook for mining sector remains bleak.

– The new vehicles sales likely to continue falling.

– Bank’s forecast average inflation rate for 2014 is 6.3 % – unchanged

– Domestic economic outlook remains fragile.

– Growth in credit extension by the banking system to the private sector maintains its weak underlying trend

– Weakening trend of household consumption continues

– Bank’s forecast for 2014 growth has been revised to 2,6% from 2.8% in 2013

– Rand exchange rate will continue to be highly sensitive

– Governor Marcus describing the #SARB’s dilemma: normalising policy amid weak growth and an uncertain global environment

– The Repo rate is kept on hold at 5.5% – Not unanimous decision‚ further hikes likely

– The South African rand pretty much unchanged after the SARB’s rate decision: bid at R10.69 to the US Dollar

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