South Africa Keeps Repurchase Rate Unchanged at 8.25 Percent

"At the current repurchase rate level, the policy is restrictive, consistent with the inflation outlook and the need to address rising inflation expectations," said SARB Governor Lesetja Kganyago while announcing the latest monetary policy at a press briefing in Pretoria, the administrative capital of the country.

Official data showed that South Africa's average inflation rate for 2023 was 6 percent, down from 6.9 percent in 2022.

Since early 2020, the Monetary Policy Committee at the SARB has recommended additional means of strengthening economic conditions, including achieving a prudent public debt level, increasing the supply of energy, keeping administered price inflation low and real wage growth in line with productivity gains, he said.

Kganyago noted that South Africa's economy was weaker than expected in the third quarter of 2023, and the central bank expected some improvement in the fourth quarter.

"For 2023 as a whole, gross domestic product (GDP) growth is revised down slightly to 0.6 percent from the November figure of 0.8 percent. Our GDP growth forecast for 2024 and 2025 is unchanged from the previous meeting, at 1.2 percent and 1.3 percent, respectively," Kganyago said.

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