Reserve Bank keeps repo rate unchanged at 7%

The bank took the same decision at the previous meeting of the Monetary Policy Committee in July.

FILE: Lesetja Kganyago. Picture: Reinart Toerien/EWN.

JOHANNESBURG - South African Reserve Bank (Sarb) Governor Lesetja Kganyago has announced the bank will leave the repo rate unchanged at 7%.

The prime lending rate, the figure charged by banks to customers, will remain at 10.5%.

The bank took the same decision at the previous meeting of the Monetary Policy Committee (MPC) in July.

Kganyago says the MPC has unanimously decided to keep rates unchanged at 7%.

He's cited inflation being in the target range of between 3% to 6%, but warns it could rise to 6.7% in the fourth quarter.

The governor also says growth for this year is revised from 0% to 0.4%, and therefore the bank will remain vigilant.

He says they believe the risks to both inflation and economic growth are finely balanced.

"Given improvements in the inflation forecast and the week economic outlook, and the assessment of the balance of risks, the MPC has unanimously decided to keep the repurchase rate at 7% per annum."