South African Reserve Bank Governor, Lesetja Kganyago.
Even though the South African Reserve Bank (SARB) kept the prime lending rate unchanged at 10.5% on Thursday, the Monetary Policy Committee (MPC) indicated that the direction of interest rates from here remains finely balanced.
While the central bank's baseline forecast still points to interest rates remaining broadly stable before easing as inflation returns to its 3% target, it also outlined scenarios under which borrowing costs could either rise again later this year or begin falling sooner than expected.
The MPC voted four to two in favour of keeping rates unchanged, with two members preferring a 25-basis-point increase.
Governor Lesetja Kganyago said the committee considered the current policy stance, following May's 0.25 percentage point rate hike, to be "appropriate for now", adding that future decisions would continue to be taken "meeting by meeting" as economic conditions evolve.
