The Reserve Bank’s announcement that interest rates, currently at 15,5 %, will remain unchanged, is welcomed by the industry. This is the second such decision by the Reserve Bank in two months, after regular interest rate increases of 0,5 percentage points since 2006.
Given the world economic and banking turmoil, impacting the local tourism industry, the Governor of the Reserve Bank is saluted by economists for his wise decision. Whilst banks around the world have decreased interest rates to stimulate their economies, the inflation rate in South Africa is still too high to have allowed the Reserve Bank to consider an interest rate cut.
The international oil price is falling, and a further petrol price decrease in November would be welcomed by all South Africans.