South African Reserve Bank Keeps Repo Rate Unchanged At 6.75%
The Reserve Bank has kept the repo rate unchanged at 6.75%, in line with the expectations of most economists and analysts.
Governor of the SA Reserve bank Lesetja Kganyago announced the benchmark rate call at a media briefing in Pretoria. He said the decision was unanimous.
The repo rate is the interest rate at which the central bank lends money to other banks. Changes in the repo rate affect the prime lending rate, which is the rate banks use as a starting point to calculate interest rates for their clients.
With the repo rate unchanged at 6.75%, the prime lending rate will remain steady at 10.25%.
Kganyago said the SARB now expects GDP growth of 0.7% in 2018, 1.7% in 2019 and 2% in 2020.
The decision was unsurprising. "The general consensus [is] that rates will remain unchanged," said TreasuryONE in a morning note to clients.
The rand, which was trading at R13.73/$ at 14:45, was changing hands at R13.74/$ after the announcement was made.