Repurchase rate to remain at 3.5%

Governor of the Reserve bank, Lesetja Kganyago, has announced that the repurchase rate will remain unchanged at  3.5%.

Some economists had expected a rate cut.

Last year, the bank cut the repo rates by a cumulative 300 basis point in the face of a hard lockdown to deal with the first wave of COVID-19.

Kganyago made the announcement during a virtual briefing in Pretoria.

Two members of the committee preferred a 25 basis point cut and three preferred to hold rates at the current level.

The implied policy rate path of the quarterly projection model indicates two increases of 25 basis points in the second of third quarter of 2021.

The steps taken by the bank have ensured adequate liquidity in domestic markets.

Reserve Bank announces interest rate decision: 

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