Repo rate remains unchanged at 5.5%

[John]

Much to the expectation of analysts, the Reserve Bank has decided to keep the repo rate unchanged at 5.5% at the first meeting of the Monetary Policy Committee this year.

"The Monetary Policy Committee has decided to keep the repurchase rate unchanged at 5.5% per annum," Reserve Bank Governor Gill Marcus said on Thursday, at the end of the meeting.I guess we should expect the rate to remain fairly stable for the next year? Already very low, so can not expect too much when it comes to further reductions?

[peterson]

Agreed. I am not expecting a big decrease in lending rates and house bonds this year.

[mercurial]

No surprises there.

[John]

No surprises there.I agree. It may well stay at 5.5% for the next 6 months.

[Tim182]

I guess we should expect the rate to remain fairly stable for the next year? Already very low, so can not expect too much when it comes to further reductions?

The Resbank is playing the waiting game, also an increase would most likely result in a strengthening of the Rand which is what they are trying to avoid as it would hurt our exports

[robt]

The Resbank is playing the waiting game, also an increase would most likely result in a strengthening of the Rand which is what they are trying to avoid as it would hurt our exports

I like them for their conservatism. No quick, knee-jerk moves are required - especially in this market.