Repo rate
Interest rate cuts unlikely this year, say economists
The Reserve Bank has projected two increases of 25 basis points in the second and third quarter of this year.
South African Reserve Bank Governor Lesetja Kganyago said that it would take time for the country to get back to pre-pandemic output levels.
This come after the bank's Monetary Policy Committee cut the repo rate by 275 basis points last year to try and counter the effects of negative growth due to COVID-19.
The South African Reserve Bank's monetary policy committee announced on Thursday that rates would remain unchanged while the economy shows some signs of picking up.
Prior to Thursday's announcement, the bank's Monetary Policy Committee had cut the repo rate by 275 basis points this year to try and counter the effects of negative growth due to COVID-19.
South African Reserve Bank Governor Lesetja Kganyago announced on Thursday that the repo rate would remain unchanged at 3.5%.
The Bank has decided to keep the repo rate unchanged at 3.5% after it had reduced the rate by 300 basis points so far this year.
Kganyago made the announcement during a briefing on Thursday afternoon.
The bank has reduced the rate by 300 basis points so far this year, in an effort to promote growth amid an economy suffering under the effects of the COVID-19 lockdown.
The Sarb has reduced the interest rate by 300 basis points so far this year in an effort to promote growth amid an economy suffering under the effects of the COVID-19 lockdown.
South African Reserve Bank Governor Lesetja Kganyago said that the bank's COVID-19 response could be described as aggressive.
Reserve Bank Governor Lesetja Kganyago said that the bank would continue to monitor growth, inflation and other economic data before deciding on the direction of the repo rate in the future.
The South African Reserve Bank Governor Lesetja Kganyago made the announcement on Thursday.
The South African Reserve Bank's Monetary Policy Committee had already cut the repo rate by 275 basis points this year to try and counter the effects of negative growth due to COVID-19.
The SARB cut rates in May by 50 basis points after the economy was shut down to limit the spread of the novel coronavirus. That followed two aggressive 100 basis point cuts in succession in March and April.
The Reserve Bank announced on Thursday that it had cut the repo rate by 50 basis points to 3.75% in order to promote growth.
South African Reserve Bank Governor Lesetja Kganyago said that inflation was stable and growth needed to be boosted.
Last month, the central bank cut the repo rate by 100 basis points.
The central bank has announced an emergency repo rate cut of a hundred basis points to 4.25%.