S. Africa keeps repurchase rate unchanged

The South African Reserve Bank (SARB) on Thursday decided to keep the repurchase rate unchanged at 7.0 percent per annum.

The decision was made unanimously at a quarterly meeting of the SARB's Monetary Policy Committee (MPC).

The central bank has left rates unchanged at 7 percent since March this year.

"The MPC is of the view that a high degree of uncertainty surrounds the nature and timing of possible policy changes emanating from significant developments in the global economic environment," the SARB said.

This elevated uncertainty creates a more challenging environment especially for emerging markets as evidenced in the recent changed pattern of capital flows, according to the bank.

Financial markets are thus likely to remain volatile for some time, the bank said in a statement.

The MPC remains concerned that the inflation trajectory is uncomfortably close to the upper end of the target range, the statement said.

Furthermore, the uncertain environment and moderately higher risks to the inflation outlook require continued vigilance, the central bank said.

"While the MPC retains the view that we may be close to the end of the hiking cycle, there may be a reassessment of this position should the upside risks transpire," SARB Governor Lesetja Kganyago said. Endit