The Reserve Bank has decided to keep the repo rate unchanged at 7% per annum, Reserve Bank Governor Lesetja Kganyago said on Thursday.

Moody’s rating agency is expected to announce whether it will downgrade South Africa’s economy.

Holding the repo rate steady at today’s Monetary Policy Committee meeting today (24 November 2016) was the right decision and one which is expected to help boost consumer confidence at a time of the year when many are planning and making career and lifestyle decisions for the year ahead, says Dr Andrew Golding, CE of the Pam Golding Property group.

The Reserve Bank on Thursday kept the repo rate unchanged at 7% - in line with market expectations.

“Tolerating additional inflation in the short run could require larger interest rate adjustments later, with proportionally greater costs for the economy.

The Reserve bank (SARB) Monetary Policy Committee (MPC) decided today to hike its policy Repo Rate by a further 50 basis points to 6.75%, a move that will see Commercial Banks raise their Prime rates to 10.25%.

With inflation within the target range and a sluggish economy struggling to regain impetus while the country experiences the worst drought in decades, the Monetary Policy Committee’s decision to further increase the repo rate by another 25bps was ill-timed, as a stable rate would have helped boost business and consumer confidence at a time when it is needed most, says Dr Andrew Golding, CE of the Pam Golding Property group.

The repo rate will remain unchanged at 6% per annum, Reserve Bank Governor Lesetja Kganyago said on Wednesday.

The South African Reserve Bank’s Monetary Policy Committee (MPC) raised the key monetary policy interest rate – the repurchase, or repo rate – by 25 basis points from 5,75% to 6% per annum.

The repo rate is to remain unchanged at 5.75% per annum, the Reserve Bank said.