Reserve Bank keeps main interest rate unchanged at 8.25%
- July 18, 2024
- Infrastructure
- 0 Comments
South Africa’s central bank kept its main interest rate unchanged at 8.25% in a decision announced on Thursday. Eighteen of 20 economists polled by Reuters predicted there would be no change in the repo rate. The decision by the central bank’s Monetary Policy Committee was split, with four members preferring an unchanged stance and two preferring a 25-basis-point rate cut. Monetary policy has remained tight in Africa’s most industrialised economy as the South African Reserve Bank tries to steer inflation back towards the midpoint of its 3%-6% target range. Consumer inflation stood at 5.2% year on year in May, the latest month for which data is available, the same as in April. “Domestically, inflation expectations do not yet reflect the 4.5% midpoint objective over the medium term,” central bank Governor Lesetja Kganyago said in a statement accompanying the decision. Economists polled by Reuters before Thursday’s announcement predicted a 25-basis-point cut in September followed by another in November.
Engineering News | Home
