The move to keep the repo rate unchanged at 8.25% comes as no surprise, as economists have predicted a cut only in September or November.
The prime rate, which is the interest rate that commercial banks charge their clients for loans, will stay at 11.75%.
The repo rate has been at 8.25% for more than a year now and remains at a 15-year high.
The South African Reserve Bank said that inflation was still not at the midpoint of its target range at 4.5%.
However, Reserve Bank Governor Lesetja Kganyago said that the bank expected inflation to stabilize over the medium term.
“We anticipate further progress as inflation slows, helping to re-anchor expectations firmly at 4.5%.”
The governor also warned that the battle against inflation was not over.
-EWN
In other news – Nkosazana Daughter responds to claims she’s Master KG’s baby mama
Well-known South African songstress Nkosazana Daughter has rubbished claims that Master KG is the father of her child. This comes after podcaster MacG revealed during a recent episode of Podcast & Chill that someone in Botswana claimed Sir Trill isn’t the father of the child but rather Master KG.
MacG’s claims left social media users shocked because Nkosazana Daughter has always been linked to Sir Trill. She went live on Instagram to clarify the matter, saying “Who’s the father? Are you f***en serious? Read More