The Reserve Bank will announce its decision on interest rates this afternoon.
JOHANNESBURG - The South African Reserve Bank has kept the interest rate unchanged at 6.5 percent.
Reserve Bank Governor Lesetja Kganyago made the announcement on Thursday.
Kganyago said the Monetary Policy Committee assessed the risks to the growth forecast to be on the downside.
Headline CPI inflation is expected to peak at 5.3 percent in the first quarter of 2020 and settle at 4.5 percent in the last quarter of 2021.
"Food price inflation continues to surprise to the downside on a monthly basis, and is expected to peak at about 6.1 percent in the third quarter of 2020," said Kganyago.
He said the forecast for core inflation is lower at 4.2 percent in 2019 (down from 4.3 percent), at 4.5 percent in 2020 (down from 4.7 percent) and remains steady at 4.6 percent in 2021.
Kganyago said the global GDP is expected to rise to about 3.4 percent in 2020.
He said although GDP growth rebounded to 3.1 percent in Q2, longer-term weaknesses in most sectors remains a serious concern.