Reserve Bank expected to keep interest rates on hold

File: South African Reserve Bank.

File: South African Reserve Bank.

eNCA

JOHANNESBURG - The Reserve Bank is widely expected to keep interest rates on hold this week.

The repo rate is currently near a five-decade low at 3.5 percent.

The bank slashed rates last year in a bid to help support the economy in the aftermath of the coronavirus pandemic and accompanying economic lockdowns.

READ: Reserve Bank expected to keep interest rates at record low levels

There is a growing expectation that the bank will eventually start to raise rates.

But many economists believe that with the current hold on inflation, a rates hike will only happen well into next year.

Higher inflation supports the case for the bank to raise rates.

Source
eNCA

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