Published 18:48 IST, July 18th 2024
South African central bank holds key rate at 8.25% as expected
The decision by the central bank's Monetary Policy Committee was split, with four members preferring an unchanged stance and two preferring a 25-basis-point rate cut.
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South Africa's central bank kept its main interest rate unchanged at 8.25% in a decision announced on Thursday.
Eighteen of 20 economists polled by Reuters predicted there would be no change in the repo rate.
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The decision by the central bank's Monetary Policy Committee was split, with four members preferring an unchanged stance and two preferring a 25-basis-point rate cut.
Monetary policy has remained tight in Africa's most industrialised economy as the South African Reserve Bank tries to steer inflation back towards the midpoint of its 3%-6% target range.
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Consumer inflation stood at 5.2% year on year in May, the latest month for which data is available, the same as in April.
"Domestically, inflation expectations do not yet reflect the 4.5% midpoint objective over the medium term," central bank Governor Lesetja Kganyago said in a statement accompanying the decision.
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Economists polled by Reuters before Thursday's announcement predicted a 25-basis-point cut in September followed by another in November.
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18:48 IST, July 18th 2024