Interest rate unchanged
The South African Reserve Bank's Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 7 percent.
Governor Lesetja Kganyago says five members of the MPC preferred an unchanged stance, while one member preferred a 25 basis point reduction.
"The MPC remains of the view that the current level of the repo rate is appropriate for now and that we are likely at the end of the tightening cycle," says Kganyago.
Kganyago says a reduction in the repo rate is possible if inflation continues to ease.
"The inflation forecast of the bank has improved over the near term, but is unchanged in the outer quarters," says Kganyago.
"In line with the previous forecast, headline Consumer Price Inflation is expected to remain within the range for the rest of the forecast period. Inflation is expected to average at 5.7 percent this year, compared to the 5.9 percent previously, while the forecast for 2018 has moderated by 0.1 percentage point to 5.3 percent."