Economics

South Africa Central Bank Holds Rate and Signals Next Move Is Up

  • Benchmark repurchase rate held at 3.5% for a second meeting
  • Central bank sees subdued economic growth, muted inflation
Construction work in the Sandton district of Johannesburg, South Africa.Photographer: Waldo Swiegers/Bloomberg
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South Africa’s central bank held its benchmark interest rate for a second straight meeting and signaled increases next year, even as its forecasts for the economy and inflation remain muted.

The monetary policy committee held the repurchase rate at 3.5%, Governor Lesetja Kganyago said Thursday in an online briefing. Of the five members on the panel, three favored an unchanged stance and two preferred a 25 basis-point cut, the same vote split as in September. The key rate remains at the lowest level since it was introduced in 1998 after a total easing of 300 basis points this year.