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S/Africa’s repo rate unchanged at 3.5% – SARB

The South African Reserve Bank's Monetary Policy Committee (MPC) on Thursday decided to leave the repo rate the same at…

The South African Reserve Bank’s Monetary Policy Committee (MPC) on Thursday decided to leave the repo rate the same at the current rate of 3.5% per annum, Reserve Bank governor Lesetja Kganyago has said.Kganyago said the decision had been unanimous to leave it unchanged, he told a virtual media briefing. 

The governor said while domestic economy grew by 4.6% in the first quarter of 2021, the MPC estimated the unrest to have fully negated the better growth results from the first quarter, resulting in an unchanged estimate of 4.2% for growth in 2021.

Despite steady improvements in vaccination rates, stronger confidence, and better global economic growth, the coronavirus continued to weigh on global prospects, he said.

“Vaccination rates are lagging in many emerging markets and developing countries. Until populations develop sufficient immunity to curb virus transmission, waves of infection are likely to continue,” the governor said.

He added: “As indicated by South Africa’s public health authorities, a third wave of virus infection is currently peaking.”

“Additionally, by raising uncertainty and reducing investor confidence, the recent unrest in parts of the country is likely to slow our ongoing recovery,” he said. 

 

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