Repo rate remains unchanged
#RandReport: Rand firms on rate hold, dollar ebbs
The central bank left its benchmark repo rate at 6.5% on Thursday, with the bank’s governor striking a more hawkish note than at the last rate meeting in July.
The rand’s gains mean it is now up almost 3% since the end of last week.
Reserve Bank Governor Lesetja Kganyago has announced the outcome of the MPC's meeting, saying while there are a number of concerns including political instability growth is expected to improve this year.
Governor Lesetja Kganyago announced earlier on Thursday that the repo rate would remain unchanged at 6.75%.
Economists say the rand and the risks such as political noise will playing a major role.
Reserve Bank Governor Lesetja Kgayago says inflation, poor business confidence, and political pressures are still impacting on the country's economy.
The Reserve Bank governor says the benefits of stronger exchange rates and higher growth are being offset by the political situation in SA.
The central bank's Lesetja Kganyago cited a stronger rand and decreasing food prices for the unchanged rate, but says that inflation is still a problem.
There is also agreement that inflation will peak in December and then slow within its target range of three to 6% next year.
The South African Reserve Bank revised the country's growth outlook for this year to 0%.
The South African Reserve Bank's MPC kept the repo rate unchanged.
Governor Lesetja Kganyago says growth looks set to remain extremely low in the near term.
Economists have raised concerns over issues affecting the country's economic growth.
Economists predict the Reserve Bank will hike the rate in the second quarter of 2016.
Lesetja Kganyago says the MPC was unanimous when deciding to keep the repo rate unchanged.
Widespread approval follows Reserve Bank Governor Lesetja Kganyago's decision to keep the rate unchanged.