Interest rates expected to remain the same

The South African Reserve Bank is expected to keep the interest rate unchanged.

Reserve Bank Governor Gill Marcus  is expected to keep the interest rate unchanged this afternoon. Picture: AFP.

JOHANNESBURG - The South African Reserve Bank is widely expected to keep rates unchanged on Wednesday, in an attempt to balance low economic growth and rising inflation.

Reserve Bank Govenor Gill Marcus will announce the monetary policy committee meeting's decision on rates this afternoon.

The repo rate is expected to remain unchanged at 5%, with the prime lending rate at 8.5%.

Rates are at 40-year lows, as it balances a struggling economy with rising inflation.

Efficient Group economist Dawie Roodt said uncertainty in Europe is also a concern.

"Cutting interest rates in this environment will lead to a further weakness in currency."

The rand is steady ahead of this afternoon's announcement on rates, after falling near a four-year low on Tuesday.