Repo rate remains unchanged at 3.5%
There's been no change to the repo rate. The Monetary Policy Committee of the Reserve Bank has again decided to hold it at 3.5%.
It was a unanimous decision. This keeps prime lending rate at 7%.
Governor Lesetja Kganyago says economic and financial conditions are expected to remain volatile in the foreseeable future.
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The overall risks to the inflation outlook appear to be to the downside in the near term and balanced over the medium term.
Global producer price inflation and oil prices remain low.
Local food price inflation is expected to remain contained.
The implied policy rate path of the Quarterly Projection Model (QPM) indicates no further repo rate cuts in the near term and two increases of 25 basis points in the third and fourth quarters of 2021.
