Repo rate decision made with consumers in mind: economist
An economist says the South African Reserve Bank's decision to keep interest rates on hold was taken with struggling consumers in mind.
Graeme Kerner says the Monetary Policy Committee chose not to burden people with additional financial pressure - by raising them.
The central bank on Thursday left the repo rate untouched at 6,75 percent - noting that the local economy remains under heavy pressure from both dynamic and international events.
This means the prime lending rate stands at 10.25%.
The Reserve Bank also revised the projected economic growth for the year down to 1% from 1.3%.
Kerner says it's too early to say whether South Africa remains safe from a technical recession.
"It doesn't look great. Quite a few investment and asset management houses - are calling it a technical recession. It wouldn't surprise me. We get Q1 and Q2 triggering a technical recession. Hopefully in the third quarter, we can start accelerating again."