Possible MPC meeting expected to dominate markets

South Africa had acted correctly in raising interest rates

Analysts say the possibility of an emergency meeting of the Monetary Policy Committee within the next week or two is set do dominate local financial markets over the period.

This comes after Reserve Bank governor Tito Maboweni said that he may call an emergency meeting because of the worsening inflation outlook. Mboweni said in an interview with SABC TV News that the dynamics of the economy were not waiting for the next MPC meeting, and that things were happening every day.

He noted that the situation was deteriorating and the MPC couldn't wait for the meeting to take place on its fixed date. Meanwhile the Rand received support from the anticipated MPC meet and surged to an 8-week high.

It is trading at R7.61 against the US dollar.