SARB keeps repo rate unchanged at 8.25%
The decision by the South African Reserve Bank’s Monetary Policy Committee should give indebted consumers a bit of a breather.
"The MPC decided to keep the repurchase rate at its current level of 8.25% per year. Three members of the Committee preferred to keep rates on hold, and two preferred an increase of 25 basis points," Reserve Bank Governor Lesetja Kganyago said on Thursday.
This keeps the prime lending rate at 11.75%.
Kganyago says while this is the second consecutive meeting where the MPC has decided to keep rates steady, they will continue to keep a close eye on inflation.
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"At the current repurchase rate level, the policy is restrictive, consistent with the inflation outlook and elevated inflation expectations. Serious upside risks to the inflation outlook remain.
"In light of these risks, the committee remains vigilant and stands ready to act should risks begin to materialise. Decisions will continue to be data-dependent and sensitive to the balance of risks to the outlook.
"The inflation and repo rate projections from the updated QPM remain a broad policy guide, changing from meeting to meeting in response to new data and risks."
