There has been speculation on whether the Reserve Bank's monetary policy committee will decrease interest rates on Thursday.

The MPC sat on its hands in an announcement made on 29 September that left the repurchase rate unchanged at seven percent.

"We're on hold for now," said Brait economist Collen Garrow.

According to Econometrix's Tony Twine, this week's meeting could confirm "that we are at the end of the road" as far as decreasing interest rates is concerned.

But opinion is divided about what Tito Mboweni will do when he delivers his last MPC decision as governor of the Bank before making way for Gill Marcus next month.

The weak retail trade figures released last week, which showed a decrease of six percent in the three months to August, could persuade the MPC to entertain a rate cut, said Liberty Life consumer economist Tendani Mantshimuli.

Signs of recovery

"In hindsight, the Bank could have cut rates more aggressively earlier this year," said Sanlam's chief economist, Jac Laubscher.

The South African economy is showing positive signs. This includes a moderate rise in food prices, and the manufacturing sector is showing signs of recovery.

These positive points have been overshadowed by poor performance in the retail sector, looming electricity tariff hikes, higher oil prices and labour costs and a strong rand.

Increased input costs — namely electricity, labour and oil — will drive up inflation, said Laubscher.

If anything, consumers should expect a rate increase in due course, said Standard Bank's chief economist, Goolam Ballim, who expects a tightening in mid-2010.

Stanlib economist Kevin Lings believes the MPC will "keep it (rate) on hold well into next year".

The Times

'Share Sexwale's wealth' Numsa says the immense wealth of Patrice Motsepe and Tokyo Sexwale must be nationalised.

Eskom's big fat lies Eskom called its application for a 45% electricity tariff hike a "smoothed" hike.

UCT is best in Africa The UCT Graduate School of Business was rated the Best Business School in Africa.