BREAKING NEWS: SARB Keeps Interest Rates Unchanged – Prime Rate Remains at 11.75%
Moments ago, the Monetary Policy Committee of the South African Reserve Bank (‘SARB’) convened its third meeting of the year. In line with economists’ predictions, SARB has again elected to keep the repurchase rate (repo rate) at 8.25% to regulate inflation, preserve financial stability, and facilitate economic growth. Accordingly, the prime lending rate of commercial banks remains unchanged at 11.75%.
It marks the sixth consecutive meeting in which SARB has declined to adjust the repo rate. Although inflation has decreased slightly, its modest progress toward SARB’s target of 4.5% is not sufficient to justify an adjustment. Given SARB’s prudent approach thus far, some economists estimate that it is unlikely to cut the repo rate before the fourth quarter.