Cape Town – The South African Reserve Bank (SARB) has decided to keep the repurchase rate unchanged at 8.25%, with the prime lending rate staying at 11.75%.
This decision, following a unanimous vote by the Monetary Policy Committee (MPC), aligns with the previous meeting in September.
SARB Governor Lesetja Kganyago cited risks to the inflation outlook as a reason for maintaining the current rate.
Against this backdrop, the MPC decided to keep the repurchase rate at its current level of 8.25% per year. The decision was unanimous. #SARBMPCNOV23 pic.twitter.com/Fys9v2vxPZ
— SA Reserve Bank (@SAReserveBank) November 23, 2023
“As we approach the end of the year, easing headline inflation and modest economic growth remain the dominant global economic trends of this past year. While households and firms exhibit some resilience, economic growth has been volatile and highly sensitive to new shocks. While our baseline inflation forecast has improved, risks to the inflation outlook are still assessed to the upside,” IOL quoted the governor as saying.
Despite some resilience in households and firms, economic growth has been volatile.
The decision is in line with expectations, and Kganyago noted that the baseline inflation forecast has improved, but risks remain.
Recent factors, such as surging egg prices, contributed to a surprise uptick in consumer price inflation to 5.9% in October.
Load shedding and energy constraints continue to impact economic activity, with GDP growth forecasts for 2023, 2024, and 2025 being revised upward, largely due to an expected decrease in load shedding.
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Compiled by Betha Madhomu
