December CPIX came in at 10.3% according to STATS SA.
The possibility of a 100 basis points cut in the repo rate is highly likely, but will the Reserve Bank take such a positive step next month?
"The SA Reserve Bank will probably be less conservative about rate cuts and will probably cut the repo rate by 100 basis points in February," according to a leading SA Economist.
The drop in inflation is mainly due to lower petrol prices at the pumps of around 18%.
Some analysts are expecting repo rate cuts of between 300 - 400 basis points this year.
Lower interest rates will certainly help lift SA's debt looming crisis and stimulate growth again, lets hope that our Reserve Bank will follow analysts expectations.
