SARB holds repo rate
The repo rate has been left
unchanged at 8.25 percent.
It keeps the prime lending rate at 11.75 percent.
Reserve Bank Governor Lesetja Kganyago says the Monetary Policy Committee's decision was unanimous.
"At this level of rates, the policy stance is considered restrictive, consistent with the inflation outlook and the need to address elevated inflation expectations."
Kganyago says inflation will take longer than expected to be reeled back in.
"We still see headline inflation heading back to 4.5%. However, given extra inflation pressure, headline now reaches the target midpoint only at the end of 2025, later than previously expected. As a result, the policy rate in our baseline forecast also starts normalising later."
The Governor has added that South Africa is a a difficult junction with regards to food prices.
"Last year, food inflation hit its highest levels since 2008. Food inflation has now slowed. But this is a critical time in the growing season, and it has been unusually hot and dry, which may cause food inflation to pick up again.
