Reserve Bank leaves repo rate unchanged
The Reserve Bank’s Monetary Policy Committee (MPC) has announced that the repurchase rate will remain unchanged at 6.5% per annum.
In a statement released on Thursday (24 May), the MPC said it still considers the level to be accommodative and appropriate given the forecast inflation trajectory and the current
state of the economy.
“However, with risks and uncertainties at high levels, the MPC will maintain its vigilance to ensure that inflation remains well within the inflation target range, and will adjust the policy stance should the need arise,” it said.
It added that the implied path of policy rates generated by the SARB’s Quarterly Projection Model reflects one increase of 25 basis points during the final quarter of this year and a similar increase in mid-2019.
“Two further increases are indicated in 2020,” it said.
“The generated path remains a broad policy guide, and the extent to which the MPC follows it will be determined by, among other things, the MPC’s assessment of the balance of risks to the forecast”.
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