The Reserve Bank's Monetary Policy Committee (MPC) has kept the repo rate unchanged at 7% per annum. "Given improvements in the inflation forecast, the weak domestic economic outlook and the assessment of the balance of risks, the MPC has unanimously decided to keep the repurchase rate unchanged at 7% per annum," Governor Lesetja Kganyago said on Thursday. At its second last meeting of the year, the MPC expressed concern about the overall inflation trajectory, which remains in the upper … [Read more...] about Repo Rate Unchanged
repo rate
Current Account Deficit Falls
South Africa’s current account deficit narrowed to 3.1% of gross domestic product (GDP) in the second quarter of this year. “The deficit on the current account of the balance of payments narrowed significantly to 3.1% of GDP in the second quarter of 2016,” said the South African Reserve Bank (SARB). The bank released its September Quarterly Bulletin on Tuesday. The 3.1% current account deficit comes after a revised deficit of 5.3% in the first quarter of 2016. Market expectation was for … [Read more...] about Current Account Deficit Falls
Repo Rate Firm
The Reserve Bank on Thursday kept the repo rate unchanged at 7% - in line with market expectations. Briefing reporters following the Monetary Policy Committee [MPC] meeting, Reserve Bank Governor Lesetja Kganyago said the decision to keep the repo rate unchanged was unanimous. “The MPC has unanimously decided to keep the repurchase rate unchanged at 7%. The MPC is aware that some of the favourable factors that contributed to this decision could reverse quickly and remains ready to react … [Read more...] about Repo Rate Firm
Repo Rate Unchanged
The Reserve Bank on Thursday kept South Africa’s repo rate unchanged at 7 percent per annum. “The Monetary Policy Committee (MPC) felt that there is some room to pause in this tightening cycle and accordingly decided to keep the repurchase rate unchanged for now at 7,0 percent per annum,” Reserve Bank Governor Lesetja Kganyago said. This is the first time this year that the repo rate has remained the same since the beginning of the year. Previously the repo rate was raised … [Read more...] about Repo Rate Unchanged
Prime lending rate up to 10.25%
South African Reserve Bank (Sarb) governor Lesetja Kganyago on Thursday announced a 50 basis-point increase in the repo rate to 6.75%, in line with the consensus. This means the prime lending rate will now be 10.25%. Lending rates have risen by a cumulative 175 basis points since late January 2014. Kganyago said the Sarb's latest inflation forecast has deteriorated. Inflation is still expected to breach the upper end of the target and remain outside its limits for the entire focus … [Read more...] about Prime lending rate up to 10.25%
Consumers get slapped
Jingle Bells are sounding more like alarm bells for over-indebted South Africans as the SA Reserve Bank's (Sarb) monetary policy committee (MPC) hiked interest rates by 25 basis points on Thursday. SARB governor Lesetja Kganyago announced that the repo rate, the rate at which the SARB lends money to commercial banks, increased to 6.25%. This takes the prime lending rate to 9.75%. With the US dollar continuously strengthening over the rand in the last two weeks and the US Federal Reserve … [Read more...] about Consumers get slapped
Repo Rate Unchanged
The repo rate will remain unchanged at 6% per annum, Reserve Bank Governor Lesetja Kganyago said on Wednesday. "As noted in previous statements, the MPC [Monetary Policy Committee] has to achieve a fine balance between realising its core mandate and not undermining short term growth unduly. The MPC has unanimously decided to keep the repurchase rate unchanged for now at 6% per annum," said Governor Kganyago. The governor said that the committee would continue to monitor developments … [Read more...] about Repo Rate Unchanged
SARB increases repo rate by 25 basis points
The South African Reserve Bank's (Sarb) Monetary Policy Committee (MPC) hiked the repo rate by 25 basis points to 6% per annum, effective from 24 July 2015, its governor Lesetja Kganyago announced on Thursday. Banks will raise their prime lending and variable mortgage interest rates by the same magnitude to 9,5% per annum, according to Jacques du Toit, a senior economist at Absa. "The Reserve Bank remains concerned about the outlook for economic growth that is constrained by severe … [Read more...] about SARB increases repo rate by 25 basis points
No change in Repo Rate
Reserve Bank Governor Lesetja Kganyago announced on Thursday that the country's repo rate will stay at 5.75%. The repo rate has remained the same since September last year, following a 25 basis points increase in July from 5.5%. At the previous Monetary Policy Committee meeting in March it was decided that the repo rate would remain at 5.75%. On the infaltion outlook Kganyago said on Thursday the main upside contribution came from coal and oil products. "The inflation forecast has … [Read more...] about No change in Repo Rate
No change to repo rate
The Reserve Bank has kept the repo rate unchanged at 5.75% per annum. "The MPC has unanimously decided to keep the repurchase rate unchanged for now," Reserve Bank Governor Lesetja Kganyago said on Thursday. The repo rate has remained unchanged since a 25 basis points rate hike in July 2014. According to the Bank's latest forecasts, inflation is now expected to average 4.8% in 2015, compared with the previous forecast of 3.8%. A first quarter average of 4.2 percent is now projected … [Read more...] about No change to repo rate
Repo Rate unchanged
The repo rate is to remain unchanged at 5.75%, Reserve Bank Governor Lesetja Kganyago said on Thursday. The decision follows the first three-day meeting of the year by the Monetary Policy Committee (MPC). "The MPC has unanimously decided to keep the repurchase rate unchanged at 5.75% per annum," Kganyago said. According to the bank, food prices remain a major source of inflation pressure. However, the moderation observed in recent months is expected to continue. The rand exchange … [Read more...] about Repo Rate unchanged
Repo rate unchanged
The Reserve Bank on Thursday kept the repo rate unchanged at 5.75% per annum. The prime lending rate will remain at 9.25%. South African Reserve Bank governor Gill Marcus made the announcement amid a domestic growth outlook that the Monetary Policy Committee described as weak. The repo rate - the rate at which the central bank lends money to commercial banks - was hiked by 50 basis points to 5.5% in January 2014. It was increased by 25 basis points to 5.75% in July. - SAnews.gov.za … [Read more...] about Repo rate unchanged
Repo Rate hike reaction
The Reserve Bank has decided to raise the repo rate by 25 basis points, taking it to 5.75%, Governor Gill Marcus said on Thursday. "The Monetary Policy Committee (MPC) has decided to continue on its gradual normalisation path and raise the repurchase rate by 25 basis points to 5.75% per annum, effective from Friday, 18 July," said Marcus. The governor said given the expected inflation trajectory, the real repurchase rate remains slightly negative and well below its longer term neutral … [Read more...] about Repo Rate hike reaction
Repo Rate increase ‘negative in the short term’
"Today's interest rate hike puts bets on further residential market strengthening off, but will at the same time serve to keep market behaviour healthy and free of speculative behaviour," so says FNB's John Loos. The impact should be seen as "negative" from a short term consumer point of view. As the positive impact of the big interest rate cuts has been gradually wearing off through 2012/13, both real household sector disposable income growth and real consumption expenditure growth have been … [Read more...] about Repo Rate increase ‘negative in the short term’
Repo rate increases to 5.5%
The Reserve Bank has hiked up the repo rate to 5.5%. "The MPC [Monetary Policy Committee] has decided to increase the repurchase rate by 50 basis points to 5.5 % per annum as of 30 January 2014," Reserve Bank Governor Gill Marcus said following the first MPC meeting of the year. The repo rate - which is the scale at which the bank lends money to commercial banks - has up until today been unchanged at 5% since July 2012. Market expectation was for the repo rate to remain … [Read more...] about Repo rate increases to 5.5%
