THEBE MABANGA
THE South African Reserve Bank Monetary Policy Committee (MPC) decided to keep the repo rate at 3,5 %, with two members of the committee voting for a 25 basis points and a majority of three voting to keep rates on hold.
The Bank says its internal model that predicts the path of interest rates, the Quarterly Projection Model, shows that there will be no further rate cuts this year or next, with the next likely move to be a rate increase in the second half of next year..
Reserve Bank Governor Lesetja Kganyago started off by expressing relief that the COVID-19 pandemic has abated in South Africa, while a range of other countries are experiencing a surge.
“The economic effects of the crisis have been extensive and a recovery to pre-pandemic levels will take several years,” said Kganyago.
“At this stage, third and fourth quarter recoveries for
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