The South African reserve Bank (SARB) today kept the benchmark repo rate steady at 3.50% as the central bank said inflation is expected to be well contained over the medium-term.
The Reserve Bank’s decision means that the prime lending rate that banks use to lend to consumers remains steady at 7%.
The central bank’s governor Lesetja Kganyago said risks to the growth outlook abd inflation outlook are assessed to be balanced.
“Against this backdrop, the MPC decided to keep rates unchanged at 3.5% per annum.
Two members of the committee preferred a 25 basis point cut and three preferred to
hold rates at the current level,” Kganyago said.
“The implied policy rate path of the Quarterly Projection Model indicates no further repo
rate cuts in the near term, and two rate increases in the third and fourth quarters of
2021.”
