JOHANNESBURG, September 21 – The repo rate will remain unchanged at 6.75 percent per annum, South African Reserve Bank (Sarb) governor Lesetja Kganyago said on Thursday.
“The MPC has decided to keep the repurchase rate unchanged at 6.75 percent per annum. Three members preferred an unchanged stance and three members preferred a 25 basis point reduction,” he said in a briefing in Pretoria.
“Ultimately the committee decided to keep the rates unchanged. Given the heightened uncertainties in the economy, the MPC felt it would be appropriate to maintain the current monetary policy stance at this stage and reassess the data and the balance of risks at the next meeting.”
The prime lending rate, the figure charged by banks to customers, will remain at 10.25 percent.
The repurchase rate is the interest rate at which Sarb lends money to commercial banks.
In July, Sarb announced that the Monetary Policy Committee (MPC) decided to reduce the repurchase rate by 25 basis points to 6.75 percent per annum due to the improved inflation outlook and the deteriorated growth outlook.
The announcement came as a relief for consumers after the bank left the repo rate unchanged at seven percent per annum in May, the seventh time in a row since May 2016.