SARB keeps repo rate unchanged at 8.25%

The decision was announced by Reserve Bank Governor Lesetja Kganyago, who said the decision was unanimous among members of the MPC.

He said the SARB’s task of achieving its inflation objective is not yet done. 

"Oil prices are back to where they were at the start of the year, close to $80 per barrel, after briefly exceeding $90. Although geopolitical tensions are far from resolved, some of the more adverse economic scenarios, such as oil prices above $100 per barrel, appear less probable now. Our own forecast suggests oil prices will remain near their current levels.

"The exchange rate of the rand has been particularly volatile since the previous MPC. It briefly appreciated to a 10-month high against the dollar last week. The starting point for our forecast is R18.57. Markets remain focused on the direction of domestic policy, a theme that has dominated many investor conversations over the past few months. Conditions remain uncertain, but we expect greater clarity in due course."

-ELECTIONS-

The announcement comes as the country awaits the results of the general election, which could see the ANC losing its outright majority.

"This is the year of great elections, there are elections everywhere, and they have led to uncertainty not just about the political trajectory because it is political leaders who decide policy, but also what is the future evolution of policy," Kganyago said

When asked about the impact of South Africa's own elections, he said: "I'm not sure who the minister of finance is going to be after the government has been formed and if you want to know what is going to happen to fiscal policy that is the guy to appropriately direct the question to."

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