South Africa’s Reserve Bank has decided to keep the repo rate unchanged at 7%, meaning the prime lending rate stays at 10.5%. Governor Lesetja Kganyago made the announcement on Thursday, explaining that rising inflation remains a concern.
Kganyago said inflation expectations continue to affect the bank’s planning, and any delays in reducing inflation could threaten price stability.
At its previous meeting in July, the central bank had lowered rates by 25 basis points and shifted its focus from the 4.5% midpoint to the lower end of its 3–6% target range.
Kganyago added that bringing inflation closer to 3% would require lower long-term interest rates.
