SARB keeps repo rate unchanged at 3.5%

The South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) has kept the repo rate unchanged at 3,5%, while the lending rate also remains unchanged at 7%.

SARB made the announcement on Thursday afternoon.

Reserve Bank Governor, Lesetja Kganyago says a stronger exchange rate and sustained economic slack are expected to offset higher electricity and food price inflation, keeping the headline inflation forecast low.

The Reserve Bank has revised economic growth to 4.2% for 2021 from a previous forecast of 3.8%.

Kanyago says the stronger growth forecast for 2021 reflects better sectoral growth performances.

Video | Interest rate announcement: 20 May 2021

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