NEWS: The Repo Rate Didn’t Go Up, This Time
Financial News
The South African Reserve Bank (SARB) unsurprisingly decided to keep interest rates unchanged amid the chaos being caused to oil prices due to the conflict in the Middle East.
This means that the repo rate stays at 6.75% and the prime lending rate at 10.25%.
The decision was unanimous, with all six members of the SA Reserve Banks Monetary Policy Committee voting to keep the rate the same.
This follows a trend seen worldwide.
Depending on how long the war continues, economies around the world will soon start to see higher inflation. SA in particular looks set to experience higher inflation due to a weaker Rand vs Dollar and Increases transport costs. That will then inevitably be followed by the SARB pushing up the repo rate in response.
Reserve Bank Governor Lesetja Kganyago says: “The fact is, we are still only a few weeks into this crisis. The coming months will be crucial for assessing the longer-term inflation consequences”.
