Repo rate: MPC didn't want to rattle markets during time of political uncertainty - Economist
The country's central bank has not made adjustments to the rate for a sixth consecutive time since May last year.
JOHANNESBURG - Following the decision to keep the repo rate unchanged at 8.25%, economist Dale McKinley said that this was meant to keep the economy stable during heightened political uncertainty.
The country's central bank has not made adjustments to the rate for a sixth consecutive time since May last year.
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South Africans took to the polls on Wednesday, with the results for the provincial and national elections expected by next Wednesday.
McKinley said that while the monetary policy committee (MPC)'s decision was in line with predictions by economists, this was also an important decision.
"We are not at all certain what's going happen, but it looks like we are heading to coalition governments. And these developments could have serious impacts on currency, on our markets and the overall perspectives on the SA economy. I don't think the MPC wanted to rattle the markets at all."