Economists expect Reserve Bank to keep repo rate unchanged

Economists anticipate the repo rate will remain unchanged for a 16th consecutive month at 7%.

FILE: SA Reserve Bank Governor Lesetja Kganyago. Picture: GCIS

CAPE TOWN – Analysts expect the South African Reserve Bank to keep the repo rate unchanged despite the inflation rate pulling back.

The Monetary Policy Committee (MPC) members will start its July meeting on Tuesday.

Economists anticipate that the repo rate will remain unchanged for a 16th consecutive month at 7%.

“Already the environment is quite favourable for a rate cut, we believe that there are just too many risks. We’ve seen some rand volatility in recent weeks.”

However, Lullu Krugell is among those who believe a cut may be on the cards in the medium term.

“Consumers must just hang in there, if you’re somebody like most of us that have quite a bit of debt to pay back, we might see some light at the end of the tunnel, in about six months.”

The MPC will make its announcement on Thursday.

(Edited by Leeto M Khoza)