Rate Hikes Sooner Rather Than Later?

Rate increases loom as inflation quickens

South African consumer inflation accelerated more than expected in May, boosting chances the Reserve Bank might start lifting interest rates before the end of the year rather than early in 2012.

Government bond yields retreated, with the yield on the four-year issue rising to 7.49 percent from 7.445 percent prior to the release of the CPI numbers at 0800 GMT.

May inflation came in at 4.6 percent year-on-year from 4.2 percent in April, Statistics South Africa said, and also quickened to 0.5 percent month-on-month from 0.3 percent, the main drivers being accelerating food and fuel prices.

Saturday Open Thread: Marcus Holds Repo Rate Steady

It's the Saturday open thread. This week's topic - The Reserve Bank held the repo rate steady. How long will they do so?

Marcus Fires Another Bullet

The Reserve Bank cut the Repo Rate another 50 basis points to 5.5%. And despite interest rates now at 30 year record lows the property market is still a dog.

Expect A Rate Hike In August

Credit uptick boosts case for rate hike

GROWTH in demand for credit by the private sector quickened in the year to June, data showed today, undermining the case for interest rates to be left on hold next month.

The Reserve Bank has increased rates by a total of 500 basis points since June 2006, partly to curb credit-driven consumer demand that was adding to inflationary pressure.

CPIX Up Again - Expect Another Rate Hike

The Consumer Price Inflation Index is up again, further strengthening the chaces of another repo rate hike by the Reserve Bank

CPIX up 10.9 percent

SA’s consumer price index excluding mortgage rate changes (CPIX) for metro and other areas rose by 10.9% year-on-year in May, from the 10.4% year-on-year increase registered in April, according to Statistics South Africa.

CPIX was up 1.1% month-on-month after it increased 1.6% month-on-month in April.

This is the fourteenth month running that CPIX has been above the 6% upper target limit.

Tito Chickens Out: Hikes Repo Rate 50 Basis Points

Despite threatening to hike rates 200 basis points the Reserve Bank has now decided to raise rates by the standard 50 basis points. Tito shows once again he prefers death by a thousand cuts and I wonder if this will mean 2 or 3 consecutive rate hikes in the future as Tito constantly finds himself behind the inflationary curve.