Interest rates will be kept on hold at 3.5%, Lesetja Kganyago, Reserve Bank Governor announced. Kganyago was speaking at a briefing today after the bank’s Monetary Policy Committee concluded its last meeting for the year.
Economists had predicted a “close split” among members. Two members were in favour of a cut while three were not, according to Kganyago. Inflation is expected to remain contained over the medium term.
The MPC also revised the year’s growth projection to -8%. This is an improvement from the -8.2% projected at the last meeting. The MPC has cut the rates by 300 basis points this year. Economists expect the rates to remain low right into 2021.