Repo rate remains unchanged at 3.5%

Posted On Thursday, 19 November 2020 16:02 Published by
Rate this item
(0 votes)

The South African Reserve Bank (SARB) has for the second consecutive cycle kept the repurchase rate unchanged at 3.5% per annum.

SARB Governor Lesetja Kganyago made the announcement on Thursday, following a Monetary Policy Committee (MPC) meeting.

Addressing reporters, Kganyago said the MPC expects economic and financial conditions to remain volatile for the foreseeable future.

“In this highly uncertain environment, policy decisions will continue to be data dependent and sensitive to the balance of risks to the outlook,” he said.

The MPC will seek to look through temporary price shocks and focus on second round effects.

He added that, as usual, the repo rate projection from the QPM remains a broad policy guide, changing from meeting to meeting in response to new data and risks.

This is the second time the SARB has not decreased the repo rate since the advent of COVID-19 in the country in March. In that month, the SARB Monetary Policy Committee cut the repo rate by 100 basis. A second 100 basis points cut was announced in April. This was followed by two 25 basis point decrease in May and a further 25 basis point cut in July.

Kganyago said the monetary policy has eased financial conditions and improved the resilience of households and firms to the economic implications of COVID-19 and continues to be accommodative.

“The bank has taken important steps to ensure adequate liquidity in domestic markets. Regulatory capital relief has also been provided, sustaining lending by financial institutions to households and firms,” he said.

The prime lending rate remains at 7%.

Last modified on Thursday, 19 November 2020 16:15

Most Popular

Accelerate appoints Derick van der Merwe as independent non-executive director

Jan 21, 2021
Derick_van_der_Merwe_Accelerate
JSE-listed Real Estate Investment Trust and 50% owner of Fourways Mall, Accelerate…

Where is the housing market headed in 2021? Dr Andrew Golding comments

Jan 19, 2021
Andrew_Golding_Golding_PropertyGroup
After the worst economic downturn in decades, further dampened by the recent tightening…

2021 - the year of the great reset

Jan 20, 2021
Yael_Geffen_LGSIR_CEO
Although the pandemic hasn’t yet abated as we had all hoped and 2021 looks to be more of…

Repo rate remains unchanged at 3.5%

Jan 21, 2021
Governor_Lesetja_Kganyago_SARB1
The Monetary Policy Committee has decided to keep the repo rate unchanged at 3.5% per…

Please publish modules in offcanvas position.