S. Africa's central bank keeps repo rate unchanged

The South African Reserve Bank (SARB) announced on Thursday that it will keep the repurchase rate unchanged at seven percent per annum.

This came after a meeting of the bank's Monetary Policy Committee (MPC).

"Given improvements in the inflation forecast, the weak domestic economic outlook and the assessment of the balance of risks, the MPC has unanimously decided to keep the repurchase rate unchanged at 7.0 percent per annum," SARB Governor Lesetja Kganyago said.

He said the MPC remains concerned about the overall inflation trajectory, which remains in the upper end of the inflation target range.

South Africa's consumer inflation slowed to 5.9 percent year on year in August, from the six percent reported in July, data released on Wednesday showed.

Headline inflation decreased to 5.9 percent for August, 0.1 percent down on the six percent recorded in July, Statistic South Africa said.

Kganyago said the bar for monetary accommodation, by contrast, remains high, as the MPC would need to see a more significant and sustained decline of the inflation trajectory within the inflation target range. Enditem