Repo Rate Remains Unchanged in September 2020
The SARB MPC has decided to leave the current Repo Rate unchanged.
The Monetary Policy Committee of the SA Reserve Bank met and discussed possible changes to the Repo Rate this month. They factored in the recent inflation figures, Rand to Dollar exchange and of course Covid-19 pandemic.
After discussing theses factors they decided there would be little benefit to adjusting the rate from its current low of 3.5% per annum.
At present, the Rand is hovering around R17 to the US Dollar and inflation predictions are sitting at around 3.3%. The global oil price is still quite low and international food inflation has calmed down greatly after the initial concern.
The decision as not 100% unanimous, with 2 members of the committee originally pushing for a 25 basis point cut while the other 3 pushed for it to remain stable.
Experts are saying that things should remain stable for the near future but that there could even be some increases late in 2021 as the markets emerge from the chaos of Covid-19.