New Reserve Bank Governor Lesetja Kganyago has kept the repo rate at 5.75%. It has remained unchanged since a 25 basis point rate hike at the Monetary Policy Committee(MPC) meeting in July.

Kganyago said, “Given the lower trajectory of headline inflation and the continued weak state of the economy, the MPC has unanimously decided to keep the repurchase rate unchanged at 5.75% per annum at this stage.”

Adding that domestic growth outlook remains challenging following two quarters dominated by the fall-out from extended strikes, some recovery is expected, but demand remains subdued.

This was his maiden monetary policy statement since taking over the reins from Gill Marcus on 9 November.

The coming quarters are expected to see an improved performance in the mining and manufacturing sectors, but the outlook is inhibited by domestic structural constraints, as well as by a weak global economy and the continued declining trend in non-oil commodity prices.

Source – SAnews.gov.za