Announcing the decision, Sarb Governor Lesetja Kganyago said the conflict in the Middle East had entered "a new and volatile phase", driving renewed uncertainty over global energy markets.
The South African Reserve Bank (Sarb) surprised markets on Thursday by leaving the repo rate unchanged at 7%, opting for caution amid heightened geopolitical uncertainty and persistent inflation risks, despite widespread expectations of another interest rate increase.
The decision by the Monetary Policy Committee (MPC) means the prime lending rate remains at 10.5% per annum.
The decision was split, with four MPC members voting to keep rates unchanged while two supported a 25-basis-point increase, underlining continued concern about inflation, which rose to 5% in June, even as economic growth weakens.
Announcing the decision, Sarb Governor Lesetja Kganyago said the conflict in the Middle East had entered "a new and volatile phase", driving renewed uncertainty over global energy markets.
