(Wraps CPI, PMI and retail sales data)
* CPI steady at 6.1 pct y/y in Dec
* PMI back in contraction territory
* Retails sales growth lower than expected
By Phumza Macanda
JOHANNESBURG, Jan 18 (Reuters) – South Africa’s
manufacturing sector is in the doldrums and growth in consumer
demand slowed more than expected, suggesting economic growth
might not be strong enough to withstand rate increases this
year.
The Reserve Bank’s first monetary policy committee meeting
of the year is underway, with its decision due on Thursday
around 1300 GMT.
The bank is expected to leave the repo rate unchanged at 5.5
percent with deliberations likely to focus on when it can start
to safely raise rates without harming a sluggish recovery.
In a Reuters poll all 25 analysts expected the Reserve Bank
to leave the repo rate unchanged with twelve expecting rates to
start rising next year. Two saw a chance of another rate cut
before year end 2012.
Continued…
