Analysts bet on 100 points cut

PRODUCER price inflation data will be released earlier than usual today, at 9am, Statistics South Africa said yesterday.

The agency said the change from the usual 11.30am release time was being made to help the central bank's Monetary Policy Committee in its deliberations on possible changes to the repo rate.

Governor Tito Mboweni will announce the MPC decision at 3pm.

Most analysts expect a repo rate cut of at least 100 basis points from the current 8.5percent as the Bank accelerates its fight against slowing economic growth. A one percentage point cut would bring the prime rate, which anchors commercial bank lending, down to 11percent, a rate last seen in the third quarter of 2006.

Analysts will be watching the PPI data for any hint that yesterday's disappointing 8.4percent CPI figure could be the last at that level before a steady decline on the back of lower growth and a firm rand.

Rand Merchant Bank expects PPI to come in around 3.9percent for April, lower than the consensus forecast of 4percent and down from 5.3percent in March.