Economics
South Africa Leaves Benchmark Rate Interest Unchanged
- MPC maintains key rate at 3.5% after 300 basis points of cuts
- Three of five MPC members favored hold, two wanted to cut
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The South African Reserve Bank left the benchmark interest rate unchanged, ending its easing cycle even as it now sees the economy contracting more than it projected in July and inflation remaining well inside its target band.
The monetary policy committee voted to hold the repurchase rate at 3.5%, Governor Lesetja Kganyago said Thursday. Of the five members on the panel, three favored an unchanged stance and two preferred a 25 basis-point cut. The key rate remains at the lowest level since it was introduced in 1998.