THE South African Reserve Bank (SARB) Governor Lesetja Kganyago has announced that the repo rate will remain unchanged at 3.5%, meaning that there is no increase in interest rates at this stage.
Kganyago made the announcement during a virtual media briefing.
He said the decision of the bank’s Monetary Policy Committee (MPC) was unanimous.
He said despite steady improvements in vaccination rates, stronger confidence and better global economic growth, the COVID-19 virus continues to weigh on global prospects.
“Vaccination rates are lagging in many emerging markets and developing countries. Until populations develop sufficient immunity to curb virus transmission, waves of infection are likely to continue,” said Kganyago.
“As indicated by South Africa’s public health authorities, a third wave of virus infection is currently peaking. Additionally, by raising uncertainty and reducing investor confidence, the recent unrest in parts of the country is likely to slow our ongoing recovery.”
Kganyago said while
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