Following on from the recent Monetary Policy Committee of the SA Reserve Bank (Sarb) meeting, the repo rate will remain at 6.5 percent. The prime rate would therefore remain set at 10 percent.
The assessment of the Monetary Policy Committee is that inflation is likely to remain within the inflation target range over the forecast period, and that the economy is expected to continue on a recovery path. The risks to the inflation forecast are seen to be more evenly balanced than at the previous meeting of the MPC. The main risks to the inflation outlook emanate from administered price developments and from the risks emanating from the global economy. The domestic growth outlook will continue to be affected by the global developments. The MPC will continue to monitor these developments closely.
For these reasons, the MPC deems it appropriate to maintain the current stance of monetary policy. Accordingly the repurchase rate remains unchanged at 6.5 per cent per annum and the prime rate remain at 10 percent.
