Interest rates to remain steady at 7% - economists

Thursday, March 25, 2010

Pretoria - Economists predict that the Reserve Bank's Monetary Policy Committee will keep the interest rates unchanged at 7 percent.

The seven-member committee is due to make public its decision on interest rates later today after a two day meeting.

"We are still expecting it to remain unchanged. There is limited space for movement. Rates are likely to remain steady," said Nedbank economist Carmen Altenkirch this week.

This was also the view of Standard Bank economist Dr Johan Botha.

"I don't think we will see a change in interest rates. Tuesday's positive (Quarterly) bulletin shows that the economy is starting to grow. We think the bank will sit tight on this one," explained Botha.

At their last meeting in January, the MPC kept the repo rate unchanged.

The central bank has cut the repo rate by 500 basis points from December 2008 to August 2009.

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