Lower borrowing costs are still likely
The 4 to 2 majority decision by the Monetary Policy Committee (MPC) on 29 January to pause its interest rate easing cycle and leave the repo rate unchanged for now was widely expected.
Prof. Raymond Parsons, economist from the North-West University (NWU) Business School, says the MPC majority view provided a plausible case as to why it was considered necessary to further entrench inflationary expectations amid ongoing global uncertainty before making a further cut in borrowing costs for businesses and consumers.