Repo rate remains unchanged

JOHANNESBURG - The South African Reserve Bank has decided to keep the repo rate unchanged at 8.25-percent.

This means that the prime lending rate will remain at 11.75 percent.

The move was expected by some economists after data from StatsSA yesterday showed that inflation dramatically eased to 5.4-percent in June from 6-point-3 percent in May.

Currently, the inflation rate is now below the central bank’s target ceiling of six-percent for the first time in 14 months.

The central bank has been relentless in hiking rates since November 2021 to contain price rises.

While reserve bank governor Lesetja Kganyago indicated that inflation will continue to ease, he says the interest rate peak has not been reached.