Guiding consumers since 2009

MPC interest rate meeting begins with Gill Marcus

By Staff Writer
There is a new Guv in town, Gill Marcus, and today she begins her first Monetary Policy Committee meeting as her tenure as The Guv, begins. In her role as the governor of the Reserve Bank she will be mainly responsible for maintaining price stability, which means she will deal with keeping inflation under control. The MPC reports on Tuesday 17th December. So what is the expected outcome?

 

  • Most think no change to interest rate
  • Minority favour 50 basis point cut
  • Any policy changes will take place later

 

The new Guv is just stepping into her tenure and this is little doubt that the current MPC meeting will follow the form of previous meetings. Any changes that may be made to policy are not likely to be effected until next year in 2010. One of the major changes to the MPC was the introduction of monthly meetings this year in response to the financial crisis. This may now revert back to the every second month meeting that was in effect previous to the crisis.

The Reserve Bank has been pursuing a policy of inflation targeting, which has some detractors, but the policy appears to have worked with inflation now only a touch outside of the target band. There appears to be little likelihood of a rate cut coming this month. Inflation targeting via interest rates essentially controls the money supply and takes some time to filter through into the real economy. Marcus has a big role to step into and it will be interesting to see how she does. As usual the announcement will be on webcast.

Recent Articles

Featured Times are tough, but keep your debt under control

While the whole world is going through a rough patch, you may also be feeling the pinch. With the country in crisis, it may be difficult to keep up with your debt instalments. However, abandoning your debt obligations is not the solution.

Debt Series Part 2: Interest rates - unpacked

In the second part of our Debt-ucate series we explore interest rates –from how to get a better rate to what influences it, and how this affects the cost of your debt.

Debt counselling – the two sides of the coin

Being overindebted doesn’t just put a strain on your personal finances; it also puts a strain on your state of mind. The best solution is to start the process of debt counselling so that you can escape the debt cycle. But what are the ups and downs of joining this debt relief programme?

Travel ban – how to claim for the loss incurred

As with the recent Covid-19 pandemic, governments sometimes issue travel bans to prevent people from travelling to other countries. This becomes even more complicated if you’ve already planned and paid for your trip. Your flights will be cancelled, and you may lose money from cancelled accommodation arrangements. How do you claim for the financial losses incurred due to a travel ban?

Deals

Get 30% back when you fill up with your Absa card

Price: Available on request
When: Daily
Where: Nationwide

Get 50% back in eBucks when you apply for an FNB home loan

Price: Available on request
When: Daily
Where: Nationwide

Get 50% off your online fees when you pay with Capitec card

Price: Available on request
When: Daily
Where: Online