CPIX rose by 7.7% in the year to May, slowing from a revised 8.5%

increase in April. Despite the fact that this was still above

expectations of 7.5%, the bond market has reacted positively and the

Rand has remained below 7.85.

It is expected that the high 2002 base will continue to drive down

inflation figures in 2003, giving the Reserve Bank reason to cut rates

again this year.

Regards

Mettle Treasury