Lesetja Kganyago, governor of South Africa's reserve bank, speaks to reporters during an unveiling event for South African rand coin designs commemorating the 25th anniversary of democracy in Pretoria, South Africa, on Wednesday, June 5, 2019. South African Finance Minister Tito Mboweni backed the central bank’s existing mandate of targeting inflation only hours after the ruling party’s top decision-making body called on the government to expand the remit to include economic growth and job creation. Photographer: Waldo Swiegers/Bloomberg
Briefs
SA keeps interest rates on hold in split decision, rand firms
The SA Reserve Bank held its benchmark interest rate even as inflation slowed to a near 9-year low, and signalled possible easing in the second half on 2020.
By Prinesha Naidoo, Amogelang Mbatha and Adelaide Changole
(Bloomberg) – The South African Reserve Bank held its benchmark interest rate even as inflation slowed to an almost nine-year low, and signalled that it may only start easing again in the second half of next year.
The rand firmed almost 10c to R14.68 to the US dollar on the move.
The Monetary Policy Committee voted to keep the repurchase rate at 6.5%, Governor Lesetja Kganyago told reporters on Thursday in Pretoria. Three members of the five-person panel opted to maintain the rate while the rest preferred a 25 basis-point cut. The decision was in line with the forecasts of all but four of the 16 economists in a Bloomberg survey.