THE Reserve Bank’s monetary policy committee signalled on Thursday that it could be reaching the end of the rate-hiking cycle if the current, improved outlook for inflation is sustained. But it made it clear that it was still a long way off rate cuts. The Bank kept interest rates on hold, as it had been widely expected to do, with the six-member committee voting unanimously for the decision, and describing the risks to the inflation forecast as "more or less balanced at this stage", with the stronger rand having moderated the risks somewhat. It also revised its forecast for the economic growth rate upwards, from zero to 0.4% for this year, following the better than expected second quarter growth figures. Bank governor Lesetja Kganyago said the expected peak in the inflation rate was now notably lower and it would return to within the target range earlier. And where the committee had said in its previous meeting in July that it had pressed the "pause" button, it shifted its language ...
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