Despite lower inflation, Kganyago says MPC not ready to start cutting cycle yet
There may be some light at the end of the tunnel for South Africans as SARB's monetary policy committee revises its outlook on load shedding as well as food and oil prices.
FILE: South African Reserve Bank (SARB) Governor Lesetja Kganyago. Picture: Karabo Tebele/702
JOHANNESBURG - The South African Reserve Bank (SARB) has attributed the hold in interest rates to a balance in risks which had been high in the past.
The central bank has kept the repo rate unchanged for a sixth time in a row, keeping it at 8.25%.
It said that in the last two months, there'd been stability with oil prices and the CPI had dropped two consecutive times.
There may be some light at the end of the tunnel for South Africans, as the reserve bank's monetary policy committee revises its outlook on load shedding, food and oil prices.
Reserve bank governor, Lesetja Kganyago, said that the consumer price inflation had been on a steady decline for two consecutive months, which was better than expected.
At the same time, Kganyago said that oil prices had remained lower than the 100 dollar mark, which was also lower than its forecast.
However, Kganyago said that this did not mean the committee could now begin its cutting cycle.
"Inflation outlook that we have is susceptible to the risks identified."
Kganyago said that while the risks were not as high this time, geopolitical tensions remained and may lead to a change in this outlook.