Thursday, 19 May 2016 17:26

Repo rate remains unchanged at 7%

Written by
Rate this item
(0 votes)

The Reserve Bank on Thursday kept South Africa’s repo rate unchanged at 7 percent per annum.

 Lesetja_Kganyago_SARB

“The Monetary Policy Committee (MPC) felt that there is some room to pause in this tightening cycle and accordingly decided to keep the repurchase rate unchanged for now at 7,0 percent per annum,” Reserve Bank Governor Lesetja Kganyago said.

This is the first time this year that the repo rate has remained the same since the beginning of the year. Previously the repo rate was raised twice.

Speaking during a media briefing, he said five members of the MPC preferred no change, while one member preferred a 25 basis point increase.

“The MPC will not hesitate to act appropriately should the inflation dynamics require a response, within a flexible inflation targeting framework,” Governor Kganyago said.

He said the MPC remains focused on its inflation mandate, but sensitive to the extent possible to the state of the economy.

“The increase in the repo rate at the previous MPC meeting contributed to the improvement in the longer-term inflation forecast, and that move should be seen in conjunction with previous actions in the cycle and the lagged effects of monetary policy,” Governor Kganyago said.

He said the committee remains concerned that inflation expectations remain at uncomfortably high levels.

“Although core inflation has remained relatively contained in recent months, with a lower peak now expected, it is forecast to accelerate and exceed the upper end of the inflation target range for four quarters in response to exchange rate and wage pressures,” Governor Kganyago said.

Last modified on Thursday, 19 May 2016 17:37

Most Popular

Calling all Cape Town owners and managers of commercial buildings and operations: Let’s talk energy and water

Mar 04, 2017
CoCT Energy Efficiency Forum
Join us for the Energy Efficiency Forum on 16 March at 8:30 for 9:00 until 12:30 followed…

Introducing cutting edge tech to the property industry

Feb 28, 2017
Virtual Reality Technology
Positioning ourselves at the cutting edge, Fieldspace Property Group is transforming the…

The Polofields development launch met with great excitement

Feb 27, 2017
The Polofields apartment block
Balwin, South Africa’s largest homebuilder focusing on large scale sectional-title…

REBOSA opposes racist property advertisement in the strongest terms

Mar 02, 2017
Jan le Roux REBOSA
The real estate industry has been placed under an uncomfortable spotlight yet again with…

Making green affordable housing a reality

Mar 07, 2017
Belhar Gardens
Nedbank Corporate and Investment Banking (NCIB) today announced that is has made the…