Economist says repo rate decision based on improving economic situation

JOHANNESBURG – Those of us with debt can breathe a little easier after the Reserve Bank decided to keep the repo rate unchanged.

Bank Governor Lesetja Kganyago announced on Thursday that the repo rate will remain at 6.75%.

He cited improved inflation, a stronger rand and a better growth outlook as some of the factors the institution’s monetary policy committee took into account.

Economist Azar Jammine says the situation had started to improve a few months ago.

“We thought that part of this would already have been reflected in the November MPC when the bank instead decided to hike rates, and at the time we were surprised at how little they had revised the forecast inflation rate downwards.”