South African Monetary Policy Stays on Hold
September 22, 2016
Officials at the South African Reserve Bank did not change their 7.0% policy interest rate at the latest review. Such has been at 7.0% since the last of six increases made in March of this year. That move culminated a tightening of policy from a 5.0% rate at the end of 2013. An improved inflation outlook despite such still hovering near the top of the 3-6% target range, as well as sluggish business investment, weak personal consumption, a constrained economic outlook and fairly balanced risks associated with the forecast of a gradual slide of inflation to 5.5% in 2018 were cited to justify leaving South Africa’s repo rate at 7.0%.
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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