APA-Pretoria (South Africa) South African Reserve Bank’s Monetary Policy Committee (MPC) has resolved to keep the final repurchase rate for 2023 at its current level of 8.25%, bank governor Lesetja Kganyago has announced.
The decision to maintain the repo rate at the same level “was unanimous”, the governor told journalists in Pretoria on Thursday.
The governor said that at the current repurchase rate level, policy was restrictive, consistent with the inflation outlook and elevated inflation expectations.
“Electricity prices continue to present clear inflation risks, and with logistics constraints, are likely to have broader effects on the cost of doing business and the cost of living,” according to the governor.
He said market-based expectations for inflation in 2023 are currently 5.8%, while medium and longer-term projections remained elevated.
Given uncertain fuel and food price inflation, considerable risk still attached to the forecast for average salaries, he said.
“Serious upside risks to the inflation outlook remain. In light of these risks, the committee remains vigilant and stands ready to act should risks begin to materialise,” Kganyago said.
NM/jn/APA