South African Reserve Bank

South African Reserve Bank

September 23, 2015

The Monetary Policy Committee voted unanimously to leave the 6.0% repo rate unchanged but acknowledged that inflation risks are skewed to the upside because of past rand depreciation and the potential for the exchange rate to slide further.  “The rand was negatively impacted by developments in China, continued speculation regarding the timing of US policy […] More

South African Reserve Bank Repo Rate Raised for First Time in a Year

July 23, 2015

A 25-basis point increase in SARB’s repo rate to 6.0% was the first change since two increases in 2014 of 50 basis points in January followed by 25 bps in July.  South Africa is struggling with both low growth and rising inflationary pressure.  Although total inflation is currently below target, a released statement projects a […] More

South African Reserve Bank

May 22, 2015

In a new statement from South African monetary authorities, officials express mounting doubts that the 5.75% repo rate is sufficiently restrictive to keep inflation in the medium term below the 6% target ceiling. Although the upward revision of the inflation forecast was relatively small, the persistence of medium term inflation at elevated levels and the […] More

South African Reserve Bank Keeps Policy Stance Paused

March 26, 2015

It doesn’t happen often that a central bank raises projected and above-target inflation for the coming two years yet leaves its policy interest rate unchanged.  Yet that is what the South African Reserve Bank just did.  Inflation is forecast at 4.8% in 2015 (a whole percentage point higher than the previous estimate) and an average […] More

South African Reserve Bank Interest Rate Left at 5.75%

January 29, 2015

There were two central bank repurchase rate increases in 2014: a 50-basis point hike in January and a follow-up 25-bp increase to 5.75% in mid-July.  A released statement after the first scheduled policy meeting of 2015 adopts a wait-and-see attitude regarding how to respond to plunging oil prices that have significantly lowered the near-term projected […] More

South African Repo Rate Left Unchanged at 5.75%

November 20, 2014

Officials at the South African Reserve Bank, who had raised their key interest rate by 50 basis points in January and 25 bps in July, continued to refrain from a third tightening.  A released statement revised projected CPI inflation slightly lower (reflecting oil developments largely), predicted continuing weak growth next year, and observed persistent underlying […] More

South African Reserve Bank

September 18, 2014

The statement released by Governor Marcus of the South African Reserve Bank outlines numerous economic imbalances.  CPI inflation of 6.4% is hovering near the target ceiling, yet GDP growth, hurt by crippling labor strikes, is now expected to be just 1.5% this year.  The current account deficit last quarter surpassed 6.2%, and the budget deficit […] More

South African Reserve Bank Tightens

July 17, 2014

As in Turkey, whose central bank cut interest rates earlier today, South Africa faces the dilemma of both weak growth and excessive inflation.  In South Africa’s case, however, the decision was to tighten slightly.  The repo rate, which was increased by 50 basis points six months ago, was this time raised 25 basis points to […] More

South African Monetary Policy Left Unchanged With Tightening Bias

May 22, 2014

The committee continues to hold the view that we are in a rising interest rate cycle, and interest rates will have to be normalized in due course. We embarked on this process with our first move in January 2014. At this stage the pace and timing of normalisation in the advanced economies appears to have […] More

South African Reserve Bank

March 27, 2014

The South African Reserve Bank embarked on a tightening interest rate cycle in January, raising its repo rate to 5.5% from a 42-year low of 5.0% in place since July 2012.  Although today’s meeting failed to increase the repo rate further, officials said that more increases would follow but that the tightening path will not […] More