The South African Reserve Bank has kept the repo rate unchanged. Some economists expected a further rate cut after the economy’s terrible performance in the second quarter.
SARB governor Lesetja Kganyago said the Monetary Policy Committee decided to hold the repo rate at 3.5 percent with effect from 18 September.
He said the bank forecasts a GDP contraction of 8.2 percent in 2020 compared to the 7.3 percent forecast in July.
Kganyago said the headline inflation forecast for 2020 is revised lower to 3.3 percent from the 3.4 percent previously promulgated in the July meeting.
WATCH NOW: Governor @KganyagoLesetja is delivering the MPC statement. Watch it live on SABC3, eNCA, BDTV, CNBC Africa and Newzroom Afrika Or livestream on SARB’s Facebook and YouTube pages. Use #SARBMPCSEP20 pic.twitter.com/VoFZv2Z99d
— SA Reserve Bank (@SAReserveBank) September 17, 2020
Overall risks to the inflation outlook appear to be balanced.
Consumers have so far received rate cuts of 300 basis points this year as the Reserve Bank tries to cushion the impact of COVID-19.
In other news – #Isibaya: Mpiyakhe Zungu’s life in critical condition
Now that Sengwayo and Sibongile have returned from their extra-long holiday, things are already being set into motion on Isibaya.
While the Zungu family is happy that he has returned after months of being away, it will be even more difficult to digest that he won’t be there for long. Learn more
Source: eNCA
