South African Reserve Bank

South African Reserve Bank Repo Rate Held at 6.75%

September 21, 2017

A 25-basis point cut in the SARB policy interest rate to 6.75% in July was a response to a then-perceived improved inflation outlook and it was the first reduction in many years. The rate had been hiked six times from January 2014 to March 2016 and by 200 basis points in all to 7.0%. At […] More

South African Reserve Bank Repo Rate Cut

July 20, 2017

South Africa’s central bank interest rate was cut for the first time in several years, and the decision drew dissents favoring no change by two of the Monetary Policy Committee’s six members. South African GDP unexpectedly contracted in the first quarter in a broad-based way. The growth outlook has worsened. Excess product supplies will consequently […] More

South African Reserve Bank Retains 7.0% Repo Rate

May 25, 2017

SARB’s repo rate had been raised in six steps to 7% from 5% between January 2014 and March 2016. The latest 5-1 voting decision not to change the 7% level has one dissenter, who as at the prior meeting favored cutting the rate to 6.75%. Although latest inflation readings were unexpectedly low, upside risks namely […] More

South African Reserve Bank Repo Rate Held at 7%

March 30, 2017

A statement released after the year’s second monetary policy review speaks of an improved inflation outlook over the past couple of months. GDP, which grew 0.3% last year, is projected to expand 1.2% this year (just shy of the estimated potential GDP trend of 1.4%), followed by 1.7% in 2018 and 2.0% in 2019. The […] More

South African Reserve Bank Meeting

January 24, 2017

The repo rate was left unchanged at 7.0% by unanimous vote and as expected. Such had previously raised in six moves from January 2014 through March 2016 from a base of 5.0%. A statement released after the latest meeting is guarded in tone, nonetheless. Projected inflation in the short term has been revised somewhat higher […] More

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 […] More

South African Reserve Bank: No Change in Policy Interest Rate

July 21, 2016

Like the ECB Governing Council and Bank Indonesia’s Board of Governors, each of which also held policy meetings today, South Africa’s Monetary Policy Committee chose not to initiate a change at this time.  Whereas the other two central banks might arguably eased, the risk in the case of South Africa was on the upside.  According […] More

South African Reserve Bank Enacts a Third Straight Rate Hike

March 17, 2016

SARB’s policy interest rate was lifted 25 basis points to 7.0%.  At the prior two meetings of the Monetary Policy Committee, such had bee increased 25 basis points in November and 50 bps in January.  There had earlier also been increases of 50 bps in January 2014, 25 bps in July 2014 and July 2015. […] More

A Tightly Contested South African Interest Rate Decision Ends Up Raising the Repo Rate to 6.75% from 6.25%

January 28, 2016

The six-person monetary policy committee at the South African Reserve Bank produced a 3-2-1 vote.  Two dissenters preferred to hike the interest rate by only 25 basis points, and another objection was cast in favor of leaving the repo rate unchanged.  Officials are mandated to secure price stability but are sensitive to deteriorating growth prospects.  […] More

South African Monetary Policy Tightened for Second Time in Four Months

November 19, 2015

The monetary policy committee of the South African Bank has raised its repo rate to 6.25% from 6.0%.  There was an earlier 25-basis point hike on July 23 and before that increases of 25 bps in July 2014 and 50 bps in January 2014.  The rate was at a 30-year low of 5.0% from July […] More