Faint hope for a rates cut

Inflation came in slightly lower than expected and comfortably within the Reserve Bank's target band, Statistics SA said yesterday.

This keeps alive the faint hope of an interest rate cut, though most economists expect the bank's monetary policy committee to keep the repo rate unchanged at 5% today.

Consumer-price inflation slowed to 5.5% last month from 6% in September, Stats SA announced yesterday. The median estimate of 23 economists who were surveyed by Bloomberg, was 5.7%.

The Reserve Bank aims to keep inflation between 3% and 6%, but feeble economic growth - forecast at slightly above 2% this year - makes a case for lowering the interest rate to nudge consumers along.

All 22 analysts surveyed by Bloomberg, however, expect the Reserve Bank to leave the interest rate unchanged.