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Inflation data indicates possible interest rate cut in September

The latest inflation data has fuelled hopes for an interest rate cut in September despite rising producer prices for maize.

June’s inflation rate is slightly lower than what some economists had predicted but aligns with the consensus expectation. “In other words, this data set confirms a lack of demand-driven inflation, which is an important consideration when the Reserve Bank decides on the interest rate path. This data is therefore providing some support for our long-standing view that the Reserve Bank will likely start to ease monetary policy reasonably soon.”

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