South Africa: weak retail sales could increase pressure for rate cut

By Nizar Manek, 13 March 2013
(Financial Times) --
South Africa’s retail sales slowed in January, according to data released on Wednesday, as consumers reacted to the growing gloom over the economy.
As the rand fell to a new four-year low against the dollar on Wednesday of 9.2, the South Africa Reserve Bank – due to hold its second policy meeting of the year next week – could face pressure for an interest rate cut. The reserve bank cut rates by 50 basis points last July at the height of the 2012 eurozone crisis.
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