Announcing the decision, Sarb Governor Lesetja Kganyago said the MPC voted by a margin of four to two to keep rates on hold. Two members preferred a 25 basis point increase, reflecting concerns about persistent inflationary pressures.
The South African Reserve Bank (Sarb) left the repo rate unchanged at 7% on Thursday, with the Monetary Policy Committee (MPC) opting for caution as higher global oil prices and rising inflation expectations continue to pose risks to the inflation outlook despite weak economic growth.
Announcing the decision, Sarb Governor Lesetja Kganyago said the MPC voted by a margin of four to two to keep rates on hold. Two members preferred a 25 basis point increase, reflecting concerns about persistent inflationary pressures.
"The committee decided to keep the policy rate unchanged, at 7%. Four members preferred a hold, while two favoured an increase of 25 basis points," Kganyago said.
"The committee agreed that the outlook is uncertain, and with the rate increase at our previous meeting, the policy stance is appropriate for now, with rates somewhat restrictive."
