Interest rates remain unchanged

The South African Reserve Bank has decided to keep rates on hold at 5.75 percent.

FILE: Reserve Bank Governor Lesetja Kganyago, Picture: Sapa.

JOHANNESBURG - The South African Reserve Bank has decided to keep rates on hold at 5.75 percent.

Governor Lesetja Kganyago made the announcement in Pretoria a short while ago.

Kganyago said growth remains under pressure and the bank will continue to monitor inflationary pressures.

He cited weakening oil prices and falling food price inflation as some of the main influences on the local economy.

"At this stage, it is unclear whether this is a temporary shock or if it is to be sustained or declined further."

He said inflationary pressures are stable with core inflation at 5.6 percent for September, below the boundary of 6 percent.

"The Monetary Policy Committee does not see significant signs of access demand pressures that are impacting on the inflation outlook."

But has also noted that the exchange rate continues to be volatile due to overseas markets and this could influence overall inflation and growth.

It was Kganyago's maiden rates announcement, having taken over from Gill Marcus earlier this month.