The acute slowdown in the economy coupled with the high base effect for many commodity and food prices as well as the re-weighting of the inflation index in 2009 makes a rate hike in August increasingly unlikely, say fund managers Stanlib.

They add that if there is a hike it would be only 50 basis points and the last in the rate hiking cycle.

"The market is very much pricing-in at least one further rate hike, with many analysts still talking about two further hikes," conclude the investment specialists.

I-Net Bridge