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Reserve Bank keeps repo rate unchanged

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The Reserve Bank has kept the repo rate unchanged at 5% per annum, it said on Thursday. Briefing reporters following the Monetary Policy Committee (MPC) meeting, Reserve Bank Governor Gill Marcus said that although the sustained breach of the bank's inflation target range was not central to forecast, upside risks to the inflation outlook required careful monitoring. "Should the risks to the medium-term inflation outlook deteriorate significantly, the MPC will not hesitate to take … [Read more...] about Reserve Bank keeps repo rate unchanged

Repo rate unchanged at 5%

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The Reserve Bank's Monetary Policy Committee (MPC) has kept the repo rate unchanged at 5% in line with market expectations. "The monetary policy stance remains accommodative and appropriate, with the real policy rate remaining slightly negative. Further accommodation at this stage is constrained by the upside risks to the inflation outlook. "The MPC has therefore decided to keep the repurchase rate unchanged at 5%," Governor Gill Marcus said on Thursday. There had been no discussion of … [Read more...] about Repo rate unchanged at 5%

Industrial Action Drives GDP down

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The SA Gross Domestic Product for the third quarter is expected to come in lower than the growth seen in the second quarter, largely due to recent industrial action in the mining sector. "We expect GDP to have expanded by 1.4% quarter-on-quarter from the 3.2% quarter-on-quarter in the second quarter owing to a steep contraction in mining production," said Absa Capital in its economic commentary on Monday. Statistics South Africa will release the third quarter’s figures on Tuesday. Analysts … [Read more...] about Industrial Action Drives GDP down

Economic growth expected to slow in coming months

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While South Africa's economic activity expanded in the second quarter, economic growth is likely to slow in the coming months, says the Reserve Bank. "Domestic economic activity is expected to moderate from the second to the third quarter of 2012," said the central bank in its October Monetary Policy Review. The country's real gross domestic product (GDP) accelerated to 3.2% in the second quarter from 2.7% in the first quarter. The increase in GDP was mainly driven by the primary sector, … [Read more...] about Economic growth expected to slow in coming months

Repo rate to remain unchanged at 5%

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The Monetary Policy Committee has kept the repo rate unchanged at 5% in line with market expectation, Reserve Bank Governor Gill Marcus said on Thursday. "Although global and domestic growth conditions remain challenging, the MPC is of the view that a further reduction in the repurchase rate is not appropriate at this stage. The MPC has therefore decided to keep the repurchase rate unchanged at 5% per cent per annum," said Marcus. Since the previous meeting of the MPC in July - at which … [Read more...] about Repo rate to remain unchanged at 5%

Modest Outlook for SA Economy

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South Africa's economic outlook remains modest, says the Reserve Bank in its Monetary Policy Review (MPR). "The economic outlook for South Africa remains modest with a gradual recovery in domestic demand and supply expected, barring further international turbulence," said the central bank as it released the MPR on Tuesday. In the review that is released twice a year, the bank said the increased uncertainty regarding developments in Europe and associated global financial market turbulence … [Read more...] about Modest Outlook for SA Economy

Repo Rate Remains Unchanged

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The Monetary Policy Committee (MPC) has decided to maintain the current monetary policy stance and keep the repurchase rate unchanged at 5.5%, announced Gill Marcus Reserve Bank Governor, on Thursday. The repo rate stands at a more than 30-year low of 5.5%, with the prime interest rate at 9%. Marcus was addressing media at the end of the normal three-day MPC meeting. Earlier, Nedbank said the MPC would face the challenge of “striking the right balance between supporting a fragile … [Read more...] about Repo Rate Remains Unchanged

Inflation to be contained by subdued economy: Reserve Bank

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Due to the relatively subdued state of the South African economy, inflation is expected to be contained, says Reserve Bank Deputy Governor Daniel Mminele. "The moderate pace of 'core' inflation (4.4% in March when excluding food, petrol and energy) shows that despite some evidence of price pressures becoming more broad-based, these are still expected to remain contained by the relatively subdued state of the domestic economy," he said on Thursday. Inflation has breached the central bank's … [Read more...] about Inflation to be contained by subdued economy: Reserve Bank

Gross Domestic Expenditure Growth up to 5.1%

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Boosted by increases in real final consumption by households and government, aggregate real gross domestic expenditure rose to 5.1% in the fourth quarter of 2011, the Reserve Bank said on Monday. "This rate of growth, the highest since the third quarter of 2010, primarily resulted from increases in real final consumption expenditure by the household sector and general government, alongside sustained firm growth in real gross fixed capital formation," the bank said in its March Quarterly … [Read more...] about Gross Domestic Expenditure Growth up to 5.1%

Reserve Bank sounds warning on inflation

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The South African Reserve Bank views risks to the country's inflation projections as being skewed slightly to the upside. "Uncertainty regarding future developments in cost–push pressures and the exchange rate pose an upside risk to the outlook, which more than offsets the downside risks from possible contagion effects from the European crisis and associated slow growth," said the bank in its Monetary Policy Review released on Tuesday. The inflation rate is expected to continue trending … [Read more...] about Reserve Bank sounds warning on inflation

Repo rate unchanged at 5.5%

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The repo rate will remain unchanged at 5.5%, the Reserve Bank said on Thursday. "The MPC has decided to keep the repurchase rate unchanged at 5.5% per annum," Governor Gill Marcus said. The decision had been unanimous. Speaking at the last Monetary Policy Committee (MPC) meeting for the year, Governor Gill Marcus said South Africa's economic recovery remains hesitant with a deterioration of the inflation outlook. Inflation is set to breach the 6% target range in 2012. Standard Bank in … [Read more...] about Repo rate unchanged at 5.5%

Low Interest Rates Stifling Economic Growth

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Low interest rates and high inflation do not encourage economic growth, economist Chris Hart said on Tuesday. "Low interest rates in the developed world have become counter-productive.... Growth has to be funded. In South Africa where interest rates are at 5.5%, we cannot get growth going," said Hart adding that inflation was too high to stimulate growth. "Savings is a critical part of driving economic growth," he said. In September the Consumer Price Index (CPI) rose to 5.7%. Hart said … [Read more...] about Low Interest Rates Stifling Economic Growth

Rates Remain Unchanged at 5.5%

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The Reserve Bank's Monetary Policy Committee (MPC) has left rates unchanged at 5.5%, Governor Gill Marcus said on Thursday. "The MPC has decided to keep the repurchase rate unchanged at 5.5 percent per annum, for the time being. The MPC is however concerned at the potential impact of the current global turmoil on domestic economic prospects and stands ready to act appropriately should the need arise," said Marcus on Thursday. Since the MPC's last meeting in July, downside risks to both the … [Read more...] about Rates Remain Unchanged at 5.5%