SA Reserve Bank keeps interest rates unchanged at 7%
South African Reserve Bank (Sarb) governor Lesetja Kganyago on Thursday announced interest rates will remain steady at 7%.
The prime lending rate therefore stays at 10.5%.
South Africans have already seen a total interest rate increase of 100 basis points since November last year.
Despite higher-than-expected headline inflation at 6.4% in October, the Sarb kept interest rates unchanged amid low economic growth and subdued consumer spending.
Kganyago said the central bank expects core inflation to peak at 5.8% in the fourth quarter, remaining within the target range.
It was no massive surprise as the MPC kept rates on hold, said TreasuryOne.
The rand, which was trading at R14.21 just before the announcement, held steady and was trading at R14.24/$ on account of international pressures from the stronger dollar.
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