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24 November 2004 Angelo Coppola

StatsSA released October’s consumer inflation data today and the rate of increase was spot on expectation; CPI 2.4% and CPIX 4.2%.

The continued low rate of increase in consumer inflation will raise calls for interest rate cuts at the next MPC meeting in December.

We are still of the opinion that this is not yet the right time to lower interest rates, it may send the wrong signal to consumers.

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