SARB Governor Lesetja Kganyago announces repo rate remains unchanged

Kganyago made the announcement during a briefing on Thursday afternoon.

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

JOHANNESBURG – The Monetary Policy Committee has decided to hold the repo rate 3.5%, with effect from 18 September 2020.

Reserve Bank Governor Lesetja Kganyago made the announcement during a media briefing on Thursday afternoon.

The bank has reduced the rate by 300 basis points so far this year, in an effort to promote growth amid an economy suffering under the effects of the COVID-19 lockdown.

The governor says global and local inflation is in check - while oil prices are stable - and all that remain is for the country to rebuild itself.

The Governor said there were a number of positive factors having an effect on the local economy.

“The overall risks to the inflation outlook at this time appear to be balanced. Global producer price and food inflation have bottomed out. Oil prices remain low, and local food price inflation is expected to remain contained.”

But he said the country has a way to go still.

“Getting back to [pre-] pandemic output levels will take time.”

However now with still growth subdued, inflation is in check and the Reserve Bank sees no reason to change the repo rate at the moment.

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