MPC keeps repo rate unchanged at 8.25%
This is the fourth hold in interest rates since May last year, after the benchmark interest rate was increased 10 consecutive times.
A YouTube screengrab of SA Reserve Bank Governor Lesetja Kganyago delivering the Monetary Policy Committee’s January statement on 25 January 2024.
JOHANNESBURG - The South African Reserve Bank's monterary policy committee has kept the repo rate unchanged at 8.25%.
This is the fourth hold in interest rates since May last year after the benchmark interest rate was increased 10 consecutive times.
The repo rate is currently at its highest in 14 years, with the decision not to increase rates in line with predictions made by economists.
Reserve Bank Governor Lesetja Kganyago said this was a unanimous decision by all members of the committee.
"The MPC decided to keep the repurchase rate at its current level of 8.25% per year. At the current repurchase rate level, policy is restrictive, consistent with the inflation outlook and the need to address rising inflation expectations."
Guiding inflation expectations back towards the mid-point of the target band will improve the economic outlook and reduce borrowing costs. Since early 2020, the Committee has recommended additional means of strengthening economic conditions, including achieving a prudent public…
— SA Reserve Bank (@SAReserveBank) January 25, 2024