Governor Lesetja Kganyago of the South African reserve bank has announced that the repo rate will remain at 6.75% . This means that the repo rate has remained unchanged. This further means that the prime lending rate will remain at 10,25%.
Kganyago mentioned a few concerns :
- A possible increase in petrol in December
- Employment outlook
- Consumer sending has remained unchanged
The bank revised the inflation outlook upward for 2018 and 2019 to 5.2% and 5.5%, from 5.1% and 5.4% previously.
This is the second time that the bank has the kept the repo rate unchanged.
In july the repo rate was cut by 25 pont basis