Cape Town – The Reserve Bank of South Africa has decided to keep the repo rate unchanged at 8.25%, as announced by Governor Lesetja Kganyago during the central bank’s recent meeting.
This decision aligns with expectations from some economists.
Three members of the Monetary Policy Committee voted in favour of maintaining the rate, while two supported an increase, EWN reported.
Despite the unchanged rate, Kganyago cautioned that inflation remains a concern, stating that the current rate is restrictive and consistent with the inflation outlook.
He also noted significant upside risks to inflation and emphasised the committee’s readiness to take action if these risks become a reality.
“At the current repurchase rate level, policy is restrictive, consistent with the inflation outlook and elevated inflation expectation. Serious upside risks to the inflation outlook remain. In light of these risks the committee the risks and stands ready to act should risks begin to materialise,” the report quoted Kganyago as saying.
According to SABC, he said that the central bank has increased its growth forecast to a still meagre 0,4% for this year, 1% next year and 1,1% in 2025.
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Compiled by Betha Madhomu
