Sarb keeps repo rate at 3.5%

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

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

JOHANNESBURG - The South African Reserve Bank has decided to keep the repo rate unchanged at 3.5%.

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

"The Monetary Policy Committee has decided to hold the repurchase rate at 3.5%. The implied policy rate path of the Quarterly Projection Model (QPM) indicates an increase of 25 basis points in the fourth quarter of 2021 and in each quarter of 2022," Kganyago said.

He said the risks to the inflation outlook appeared to be on the upside, despite weaker than expected services inflation outcomes in recent months.

"Risks emanate from rapid global producer price inflation, food price inflation, petrol, electricity, and other administered prices."

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