SARB
The South African Reserve Bank has left the repo rate unchanged at 8.25% following a meeting of its monetary policy committee this week.
Govenor Lesetja Kganyago said four members preferred an unchanged stance, and two preferred a reduction of 25 basis points.
The decision announced on Thursday means that the prime lending rate by banks also remains unchanged at 11.75%.
Kganyago said the central bank expects somewhat faster growth supported by more reliable electricity supply and improving logistics, among other factors.
"Our revised growth projections, nonetheless, remain below longer run historical averages of about 2%. The risks to this forecast are assessed as broadly balanced with ample scope for structural reforms to lift growth further over the medium term," Kganyago said.
The MPC decided to keep the repo rate unchanged at 8.25%. Four members preferred an unchanged stance, and two preferred a reduction of 25 basis points. pic.twitter.com/JddmlKxg0t
— SA Reserve Bank (@SAReserveBank) July 18, 2024
He said on the inflation front, the most recent "headline print for May was 5.2%", which he said was unchanged from April and is still in the top half of the bank's inflation target range.
Kganyago said the inflation outlook has improved somewhat, with headline CPI for the year projected at 4.9%, compared to 5.1% at the previous meeting.
He said over the next few quarters, headline inflation is expected to dip below the 4.5% mid-point mainly because of fuel and food prices.
"The outlook is supported by the stronger Rand exchange rate," he said.
