Repo rate to remain unchanged at 3.5%

Reserve Bank 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: @SAReserveBank/Twitter

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, adding that the decision was unanimous.

This comes after the bank's announcement in July that it would keep the rate steady at 3.5%.

The governor said despite the July looting and violence, the economy was growing.

“We are expecting the economy to grow by an upwardly revised 5.3% this year despite the much larger negative effect on output that was previously estimated from the July unrest.”

He added that inflation looked set to remain stable.

“With largely unchanged inflation expectations, and even with continued upside risks, the committee expects inflation to stay close to the midpoint of the inflation target over the forecast period.”

But Kganyago warned that the situation could change as oil and the rand exchange rate could affect the overall picture.

WATCH: Repo rate announcement

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