Reserve Bank Governor Lesetja Kganyago
Photo by: Duane Daws
In line with the consensus among economists, South African Reserve Bank (SARB) governor Lesetja Kganyago on Thursday announced that there would be no change in the interest rate.
This means that the repo rate, which is the interest rate at which the Sarb lends money to commercial banks, remains at 7%. The cost of borrowing stays at 10.5%.
The SARB's monetary policy committee has raised the interest rate by a total of 100 basis points since November last year.
The rand, which was trading below R14.30/$ before the announcement and moved to R14.26 as Kganyago delivered the MPC statement.