Lehman Brothers surprised at 0.5% rate hike
Fri, 13 Jun 2008 17:02Global analysts the Lehman Brothers said that the Reserve Bank's 50 basis point hike is inconsistent with South Africa's inflation outlook. Lehman Brothers say that the lower than expected rate hike contradicts the governor Tito Mboweni's own statement about taking 'drastic action' to contain inflation.
At the monetary policy announcement yesterday, Governor Mboweni said that consumer inflation in the country is seen peaking at around 12% in the third quarter and not seen returning to the 3% to 6% target band.
