JOHANNESBURG - The Rand is recovering after falling to its weakest level in two months.
It fell further on Friday but is now back at Thursday's level.
Investors had expected a quarter of a percentage point rate hike.
When the Bank said no change, the currency slipped to R16.90 to the dollar.
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The Reserve Bank says weaker economic growth and a slightly improved inflation outlook supported its decision to hold rates.
However, Governor Lesetja Kganyago warned that the conflict in the Middle East remains a major risk.
He said higher oil and fertiliser prices could fuel inflation and force the Bank to raise interest rates again - after the first hike in three years in May.