South Africa's central bank left its main interest rate on hold at 6.5% on Thursday as expected, saying it would like to see inflation expectations anchored closer to the midpoint of its target range. The decision by the bank's monetary policy committee was unanimous. South Africa has seen benign inflation outcomes this year, but growth has been sluggish.
By Aaisha Dadi Patel and Gabriele Steinhauser. PRETORIA, South Africa--The South African Reserve Bank on Thursday kept its main repo rate at 6.5%, rejecting demands for more economic stimulus amid investor concerns over the government's rising deficit and debt. The SARB's decision, which followed a 0.25 percentage-point rate cut in July, contrasts with recent moves by other developed and emerging-market central banks--including the European Central Bank and the U.S.
South Africa's central bank left its main interest rate on hold at 6.5% on Thursday in a unanimous decision. The majority of economists polled by Reuters had predicted that the South African Reserve Bank would leave the rate on hold. South Africa has seen benign inflation outcomes this year, but growth has been sluggish.
Below are comments from South African Reserve Bank Governor Lesetja Kganyago on Thursday as he announced the central bank's latest decision on its benchmark repo rate. INFLATION. "The medium-term inflation outlook is largely unchanged. "Electricity, food and fuel price inflation continue to shape the near and medium-term trajectory of headline inflation." GROWTH.
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