The Reserve Bank has reduced the repo rate by 25 basis points to 6.5% in line with market expectation. “The MPC [Monetary Policy Committee] unanimously decided to reduce the repurchase rate by 25 basis points to 6.5% per annum, with effect from 19 July 2019,” Reserve Bank Governor Lesetja Kganyago announced on Thursday. The MPC announced the decision following its meeting which got underway in Pretoria on Tuesday. Asked about whether the central bank had considered a 50 basis point rate … [Read more...] about Reserve Bank cuts repo rate by 25 basis points
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Have your say on financial law bill
National Treasury has published the Financial Sector Laws Amendment Bill, which will strengthen the Reserve Bank to manage the orderly resolution or winding down of a failing financial institution for public consultation. Treasury published the Bill for public comment on Tuesday after its approval by Cabinet. “The amendments will strengthen the ability of the South African Reserve Bank to manage the orderly resolution or winding down of a failing financial institution, with minimum … [Read more...] about Have your say on financial law bill
Repo rate unchanged at 6.5%
The Reserve Bank has decided to keep the repo rate unchanged at 6.5% per annum, Governor Lesetja Kganyago said on Thursday. “At these levels, the MPC [Monetary Policy Committee] still assesses the stance of monetary policy to be accommodative and appropriate, given the forecast inflation trajectory and the current state of the economy. “However, with risks and uncertainties at high levels, the MPC will maintain its vigilance to ensure that inflation remains well within the inflation target … [Read more...] about Repo rate unchanged at 6.5%
No change in repo rate
The repurchase rate will remain unchanged at 6.75% per annum, Reserve Bank Governor Lesetja Kganyago announced on Thursday. “In light of the recent developments and the balance of risks, the MPC [Monetary Policy Committee] has decided that it would be appropriate to maintain the current monetary policy stance at this stage,” the Governor said on Thursday at the announcement of the decision of the Monetary Policy Committee. Five members of the MPC members preferred an unchanged stance, … [Read more...] about No change in repo rate
Reserve Bank says growth above 1.5% unlikely
South Africa is unlikely to have growth above 1.5% in the next two years, the Reserve Bank said on Wednesday. Releasing the Monetary Policy Review (MPR), the central bank said domestic growth has stalled due to political and policy uncertainty that has depressed household and business confidence. “The forecast indicates a feeble recovery over the next two years but even in 2019, expected growth barely exceeds 1.5%,” said the bank. The Reserve Bank had previously stated that it sees … [Read more...] about Reserve Bank says growth above 1.5% unlikely
Repo rate reduced
The Reserve Bank’s Monetary Policy Committee (MPC) on Thursday reduced the repo rate by 25 basis points to 6.75%. Briefing reporters following the MPC’s meeting, Reserve Bank Governor Lesetja Kganyago said the bank “will not hesitate to revise the move if the need arises”. “Underlying demand in the economy is extremely weak and the MPC is concerned about the deterioration in the growth outlook over the forecast period. This decline is broad-based. “It is unclear where the drivers of … [Read more...] about Repo rate reduced
Repo Rate Unchanged
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 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
Interest Rates to continue rising
With South Africa's rising inflation, the Reserve Bank says it is necessary to raise interest rates. "Tolerating additional inflation in the short run could require larger interest rate adjustments later, with proportionally greater costs for the economy. Higher inflation would also have its own economic costs by damaging competitiveness, eroding living standards and weakening confidence," said the Reserve Bank. In its April Monetary Policy Review, the Reserve Bank said the changes in … [Read more...] about Interest Rates to continue rising
Repo rate UP
The Reserve Bank on Thursday increased South Africa's repo rate by 25 basis points to 7% per annum. "Given the upside risks to the inflation forecast and the protracted period of the expected breach, the MPC decided that further tightening was required to complement the previous moves. Accordingly, the MPC decided to increase the repurchase rate by 25 basis points to 7% annum, effective from 18 March 2016," Governor Lesetja Kganyago said. The increase follows on the Monetary Policy … [Read more...] about Repo rate UP
Reserve Bank likely to keep rates unchanged – expert
The Monetary Policy Committee of the SA Reserve Bank (Sarb) is likely to keep interest rates unchanged at its meeting on Thursday, according to international market research company Citi Velocity. "Our baseline forecast is that the repo rate will remain unchanged at 6%. That said, it is another close call," the company said in an overview. The Sarb will only hike if it's inflation profile results in a two-quarter breach (extended) and we see this unlikely, Citi Velocity said. "The … [Read more...] about Reserve Bank likely to keep rates unchanged – expert
Economy predicted to recover
Despite the country's Business Confidence Index falling to its lowest level since 1993, the economy is well positioned to recover from the current slowdown, said Brand South Africa. "It cannot be disputed that the South African economy is experiencing challenges with the World Bank and the South African Reserve Bank having revised growth targets downwards in the recent weeks," it said on Tuesday. However, according to Brand SA, the country has a range of strengths that can be leveraged to … [Read more...] about Economy predicted to recover
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
SA repo rates expected to stay unchanged
The SA Reserve Bank (Sarb) is likely to keep the repo rate unchanged at 6% when its Monetary Policy Committee (MPC) meets on Wednesday, according to international market research company Citi Velocity. This is because the US Federal Reserve decided not to raise its rates last week. "We believe that growth concerns will come to the fore in the MPC statement. The MPC's argument for not raising rates further is likely to be that forex moves are largely being countered by the lower oil price, … [Read more...] about SA repo rates expected to stay unchanged
