Reserve Bank leaves repo rate unchanged at 7%

The central bank has left rates unchanged at 7% since March last year.

Reserve Bank Governor Lesetja Kganyago. Picture: South African Reserve Bank.

JOHANNESBURG - South African Reserve Bank (Sarb) governor Lesetja Kganyago has announced that the repo rate will remain unchanged at 7%.

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

The central bank's Monetary Policy Committee (MPC) has left rates unchanged at 7% since March last year.

“The MPC remains focused on the medium to long-term inflation outlook, but the deterioration of the shorter term outlook requires increased vigilance," says Kganyago.

He says the bank is concerned about climbing inflation, but expects it to stabilise later this year and return to the target range of between 3 and 6%.

Kganyago also says growth remains a concern.

"While some improvement is anticipated over the forecast period, growth is expected to remain below potential."