SARB keeps repo rate unchanged at 7.5%
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GUEST – Johann Els - Old Mutual Group Chief Economist
The South African Reserve Bank (SARB) has once again opted to hold the repo rate at 7.50%, keeping the prime lending rate steady at 11.00%. This decision, though expected by many economists, comes at a time of heightened global uncertainty and shifting economic dynamics.
With the world economy facing unpredictable trade tensions and geopolitical shifts, the Monetary Policy Committee (MPC) found itself weighing the risks of inflation, sluggish local growth, and potential external shocks. While South Africa’s inflation remains relatively contained, concerns about future price pressures and weaker economic performance contributed to the cautious approach.
The South African Reserve Bank (SARB) has once again opted to hold the repo rate at 7.50%, keeping the prime lending rate steady at 11.00%. This decision, though expected by many economists, comes at a time of heightened global uncertainty and shifting economic dynamics.
With the world economy facing unpredictable trade tensions and geopolitical shifts, the Monetary Policy Committee (MPC) found itself weighing the risks of inflation, sluggish local growth, and potential external shocks. While South Africa’s inflation remains relatively contained, concerns about future price pressures and weaker economic performance contributed to the cautious approach.