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Interest rate cuts still some way off - economists

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Cape Town - Interest rate cuts are likely still some way off given upside risks to the inflation profile posed by a volatile domestic currency and above-inflation nominal wage settlements, Sanisha Packirisamy, economist at MMI Investments and Savings, said on Wednesday.

This is ahead of the last interest rate announcement for 2016 by the SA Reserve Bank's Monetary Policy Committee (MPC) due on Thursday.

"Core inflation shows signs of underlying inflationary pressures, while inflation expectations by businesses and labour unions remain elevated, even over a five-year horizon, posing a risk to headline inflation," said Packirisamy.

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