SA’s economic trouble | Interest rate hike expected

JOHANNESBURG - The interest rate is expected by 50 basis points next week.

That is according to economist Bonke Dumisa.

He bases this on the latest inflation data which shows an increase from 6.9 to 7 percent in February.

READ: CPI rises to 7% in February

Dumisa says the US Fed hiking rates and a cautious Monetary Policy Committee are not helping matters.

"What is more significant about this is that many of us we saying the CPI was on a downward trend, all of sudden it has gone up to the 7 percent," he said.

"We have a very cautious SARB monetary committee and it takes cue from US many times and the US has increase repo rate."