SARB governor Lesetja Kganyago
Photo by: Bloomberg
The South African Reserve Bank's (SARB's) monetary policy committee has again decided to keep the repo rate unchanged at 6.75%, a decision widely expected by analysts.
The central bank's governor Lesetja Kganyago made the announcement at a media briefing in Pretoria on Thursday afternoon.
The repo rate is the benchmark interest rate at which the Reserve Bank lends money to other banks. Changes in the repo rate affect the prime lending rate, which is the lowest rate at which banks start lending to clients. With the repo rate unchanged, the prime lending rate will remain unaltered at 10.25%.
The bank last hiked the repo rate in November 2018 from 6.5% to 6.75%. The MPC kept rates on hold at its two last meetings in January and late March.
Kganyago said SA GDP growth was expected to expand by 1% in 2019. High debt levels and the possibility of load shedding would likely continue to negatively impact on inflows of foreign direct investment, he added.