MPC votes 4-3 so no change in Repo Rate but Marcus says we’re into rising cycle

South African Reserve Bank Governor Gill Marcus smiles as she shows off South Africa's new banknotes before conducting the first transaction in PretoriaReserve Bank Governor Gill Marcus says four members of the Monetary Policy Committee voted to keep interest rates on hold, with the other three voting for an increase. Answering questions after her presentation, Marcus added that the country was now back into a rising interest rate cycle. Download Governor Marcus’s full MPC statement of this afternoon by clicking here.   – AH

PRETORIA (Reuters) – South Africa’s Reserve Bank left interest rates unchanged at 5.5 percent as expected on Thursday, saying the economic growth outlook remained subdued although risks to inflation were on the upside.

The decision follows a surprise 50 basis point increase at the first policy meeting of the year in January after other emerging markets had increased rates sharply to try and defend their weakening currencies.

 

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