Nedbank’s Group Economic Unit says the Reserve Bank’s Monetary Policy Committee has confirmed its view that it is too early to call the end of the rate hiking cycle. The MPC on Thursday left the repo rate unchanged at 7%‚ in line with market expectations‚ saying that the risks to the growth outlook have remained balanced. It added that its growth forecasts have remained unchanged at rates that indicate that the slack in the domestic economy will reduce gradually over the next two years The Nedbank economists noted however that the inflation trajectory remained a concern‚ with food inflation likely to remain sticky despite indications that rainfall during the current planting season would be better than in the previous season. International oil prices also posed a risk as they could rise if key producers reached an agreement to restrict output soon.“The rand faces pressures from both the global and domestic fronts‚ with the imminent US interest rate hike and the uncertain policies of the incoming US administration likely to put emerging markets under pressure. Domestically‚ rating agencies will review their ratings over the next two weeks and a negative assessment of the local economic and political situation could put the currency under renewed pressure.“We therefore still believe that chances of another rate hike in early 2017 remain‚ but much will depend on rand movements and their impact on inflation‚” the Nedbank economists said...