April PPI quickens, lifts rate-hike chances

[mwk]

South Africa's factory gate inflation rose to 11,1 percent year-on-year in April from 10,3 percent in March, adding to a bleak inflation outlook and increasing the chance of an interest rate hike next week.
Analysts said the latest data hardened the case for an interest rate hike when the Reserve Bank meets on June 6-7.
"The debate will border on between 50 and 100 basis points. Ideally I think 100 basis points would be the best call in this instance," he added.
Full article...
http://www.engineeringnews.co.za/article.php?a_id=110151

[SimonPB]

it'll be 50 at most. 100 bps when it has at best an indirect influence on inflation would be stupid.

[mwk]

Yep.
Others agree as well. Excerpt from...
http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A480542
The Bank is now widely expected to raise its repo rate by half-a-percentage point to 9,5% at its next monetary policy meeting on June 6-7. No one is betting on a bigger increase because it would smack of panic, and possibly imply that the Bank erred in not tightening policy earlier this year, after raising lending rates by two full percentage points in the second half of last year.