Sarb's Kganyago announces repo rate unchanged at 3.5%

South African Reserve Bank Governor Lesetja Kganyago said that domestic GDP was expected to grow by 4.2% this year from 3.8% in March.

South African Reserve Bank (Sarb) Governor Lesetja Kganyago. Picture: @SAReserveBank/Twitter

JOHANNESBURG - The South African Reserve Bank has decided to keep the repo rate unchanged at 3.5% but will continue to monitor the situation.

Governor Lesetja Kganyago made the announcement on Thursday after a meeting of the monetary policy committee.

He said that there were a number of postive factors after a very difficult 2020.

Kganyago said that the country's growth figure for this year was predicted to be 4.2%.

"The stronger growth forecast reflects better factual growth performances and more robust terms of trade in the first quarter of this year."

He said that the MPC noted that inflation had risen, but said that it did not expect this to increase significantly.

"If our analysis is that it is fitting into a continuous rise in inflation, we stand ready to act."

The governor said that commodity prices were also up, which was boosting the economy.

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