Kganyago told reporters that the MPC had reached the decision after assessing overall risks to the inflation outlook to be more or less evenly balanced.
“Key upside risks are rising administered prices, including electricity and water tariffs, rising domestic food prices in the outer years and higher international oil prices,” he said.
Kganyago said the downside risks include lower global inflation and an extended period of monetary accommodation in advanced economies.
Monetary policy actions would continue to focus on anchoring inflation expectations closer to the mid-point of the inflation target, in the interest of balanced and sustainable growth, he added.
The MPC was of the view that there was little evidence of demand side pressures in the economy. Over the medium term, cost-push factors could arise from higher electricity, fuel and food prices, the governor said.
The MPC’s approach was to focus on the possible second-round effects of supply side shocks. Any future policy adjustments would continue to be data dependent, he said.
Kganyago said the MPC continued to assess the stance of monetary policy to be accommodative.