Repo rate to remain unchanged at 6.5%

PRETORIA - South African Reserve Bank (Sarb) governor Lesetja Kganyago has announced that the repo rate will remain unchanged at 6.5%.

The repo rate is the rate at which the central bank lends money to commercial banks.

At its previous meeting in September, the Monetary Policy Committee also decided to keep the rate unchanged, citing factors that could influence inflation.

On Wednesday, Stats SA announced that the headline consumer price index fell to 3.7% in October, from 4.1% the month before, representing its lowest level since February 2011.

Kganyago said there were a number of headwinds challenging growth.

“Since the September meeting of the MPC, global economic indicators have remained weak and global inflation low. Central banks in advanced economies provided more monetary accommodation, helping to ease global financing conditions, but further easing appears less likely. Downside risks from heightened trade tensions and geopolitical developments remain,” Kganyago said.

He added: “Despite a rebound in local GDP in the second quarter of this year, indicators suggest that economic activity will remain weak for the rest of the year. Recent monthly inflation has been lower than the mid-point of the inflation target range, as owners’ equivalent rent, food, and services inflation remain subdued.”


This article first appeared on EWN : Repo rate to remain unchanged at 6.5%


Recommended

by NEWSROOM AI
Read More
Lesufi: Enoch Mpianzi's death will be investigated

Lesufi: Enoch Mpianzi's death will be investigated

Enoch Mpianzi (13), a Parktown Boys' High learner, drowned during what has been described as a water activity in a river at a lodge while on a school camp on Wednesday.

Kganyago announces repo rate cut to 6.25%

Kganyago announces repo rate cut to 6.25%

The decision follows this week's Monetary Policy Committee meeting.

Old Mutual wins appeal against Peter Moyo reinstatement

Old Mutual wins appeal against Peter Moyo reinstatement

Judgment was handed down on Tuesday morning and the application was dismissed with costs.

Jabu Mabuza resigns as Eskom chair

Jabu Mabuza resigns as Eskom chair

In a statement released by the Presidency, Cyril Ramaphosa noted that Jabu Mabuza had tendered his resignation on Friday 10 January 2020.

World Bank cuts SA's growth forecast over load shedding - report

World Bank cuts SA's growth forecast over load shedding - report

It now expects the economy to expand by 0.9% this year.

Load shedding back from 9pm

Load shedding back from 9pm

Eskom says load shedding is at night to minimise the impact of power cuts by not affecting the working day.

Popular articles
'Who gives a damn that Enoch Mpianzi's family couldn't afford a life jacket?'

'Who gives a damn that Enoch Mpianzi's family couldn't afford a life jacket?'

Eusebius McKaiser says the media needs to ask questions that don't unintentionally frame the wrong issue around this tragedy.

[WATCH] Young boy's school concert dance moves delights Twitter

[WATCH] Young boy's school concert dance moves delights Twitter

Khabazela shares tweets and Facebook posts that have gone viral.

How to buy your first share (even if you only have R50, or less)

How to buy your first share (even if you only have R50, or less)

Got R50? No? Got R5? Personal finance expert Warren Ingram on how to buy shares with tiny amounts of money.