The South African Reserve Bank’s Monetary Policy Committee (MPC) has opted to keep the repo rate steady at 7.5%, marking a pause after three consecutive rate cuts in previous meetings.
The decision was announced on Thursday afternoon following the conclusion of the MPC’s March meeting.
Reserve Bank Governor Lesetja Kganyago noted that the decision was not unanimous, with four committee members voting to maintain the current rate and two advocating for a 25 basis point reduction.
Although inflation remains under control for now, Kganyago emphasised the need for caution amid ongoing global and domestic uncertainties.
He pointed out that while investor confidence in South Africa has improved in recent quarters, evidenced by lower bond yields and reduced risk premiums, these gains could be threatened by instability in the global economy and internal challenges.
As a result, the central bank is opting for a cautious approach to monetary policy to safeguard economic stability.
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