South Africa

South African Credit Policy Left as It Was

July 21, 2011

As widely expected, officials at the South African Reserve Bank (SARB) retained their 5.5% repo rate level, which is a cyclical low.  Three additional reductions last year of 50 basis points each in March, September and November followed 500 bps of ease implemented from December 2008 to August 2009.  The central bank rate remains 650 […] More

A 50-Basis Point Central Bank Rate Cut in South Africa

November 18, 2010

While central banks in other commodity-sensitive economies like Australia, Canada and News Zealand have begun to tighten monetary policy, the South African Reserve Bank remains in easing mode.  Cuts in the repo rate have been administered in two waves, a total of 500 basis points in six steps from 12% at the start of December […] More

South Africa Gets an Eighth Interest Rate Cut

September 9, 2010

With an as-expected 50-basis point repo rate reduction to 6.0% announced today, the South African Reserve Bank has in eight steps now halved its repo rate.  Six of the moves totaling 500 basis points were implemented between December 2008 and August 2009.  No changes were made at the subsequent four policy meetings including the first […] More

South African Repurchase Rate Kept at 6.5%

July 22, 2010

The unchanged monetary policy setting announced by the South African Reserve Bank was the result expected by a majority of analysts and matched the outcome of the prior policy meeting in May.  Inflation risks are considered balanced.  Cost-push upward forces from high recent wage awards and elevated administered prices counter-balance downside demand-pull pressures associated with […] More

No Change in South Africa’s 6.5% Repo Rate

May 13, 2010

The South African Reserve Bank (SARB) left its benchmark interest rate at a 12-year low of 6.5% after today’s policy meeting, which was the result that analysts expected.  A statement from monetary authorities expressed concern about the downside risk to growth posed by Europe’s sovereign debt problems, which has rattled stock prices in South Africa […] More

An Unexpected South African Rate Cut With a Lesson for the Euro

March 25, 2010

The South African Reserve Bank (SARB) cut its repo rate to 6.5% from 7.0% in a move that was not foreseen by analysts.  Since the prior rate hike last August, which also was by 50 basis points, the central bank’s monetary policy committee had met four times — in September, October, November and January — […] More

South African Reserve Bank Keeps 7.0%Repo Rate As Forecast

January 26, 2010

A statement from South Africa’s central bank looks for sustained in-target CPI inflation from this March through end-2011 with evenly balanced risks.  Positive growth resumed in the third quarter, but GDP remains below year-earlier levels.  CPI inflation decelerated from 6.1% in September to 5.8% in November, and producer prices have been lower than a year […] More