SARB MPC keeps repo rate unchanged at 7.5%

JOHANNESBURG - The South African Reserve Bank (SARB)'s monetary policy committee (MPC) has decided to keep the repo rate unchanged at 7.5%.

This is the first pause after three cuts in previous meetings by the MPC.

The central bank wrapped up the March meeting on Thursday afternoon.

Reserve Bank Governor Lesetja Kganyago said the decision was not unanimous.

"Against this backdrop, the MPC decided to keep the policy rate unchanged, at 7.5%. Four members preferred this action, while two favoured a cut of 25 basis points."

While inflation appears contained for now, Kganyago said that caution was needed to manage global uncertainties.

"For several quarters we have enjoyed rising confidence in South Africa, with a smaller country risk premium and lower bond yields. However, the global economy is not on a stable footing and there are also domestic uncertainties, which put these favourable trends at risk. This calls for a cautious policy approach."