Reserve Bank slightly more positive about inflation, but Transnet crisis now serious threat

Even after annual consumer inflation shocked the market on the upside on Wednesday, rising to 5.9% in October – higher than any economist surveyed had forecast – the Monetary Policy Committee kept the country's repurchase rate on hold for the third consecutive meeting at 8.25% on Thursday. This was in line with estimates from the nine economists reviewed by News24. Holding the rates became possible after the Reserve Bank's gross domestic product outlook improved; spending by firms, households, public corporations and general government remained positive in real terms on an annual basis; the disposable income of households was expected to grow; the investment forecast for the year was revised up to 7.7% in September; and credit growth to households and corporates slowed, but remained positive.