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

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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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