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WATCH: Interest rates remain unchanged

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The Governor said during his briefing that food price inflation continues to surprise to the downside on a monthly basis.

JOHANNESBURG – South African Reserve Bank (Sarb) Governor Lesetja Kganyago announced today the bank’s latest decision on interest rates following the three-day meeting of the monetary policy committee (MPC) which he chairs.

Kganyago announced that Sarb would be keeping interest rates unchanged at a media briefing held today. 

Kganyago said during his briefing that food price inflation continues to surprise to the downside on a monthly basis, and is expected to peak at about 6.1% in the third quarter of 2020.

The MPC decided to keep the repurchase rate unchanged at 6.5% per annum –@KganyagoLesetjapic.twitter.com/w8dilTXNk1

— SA Reserve Bank (@SAReserveBank)November 21, 2019

The forecast for core inflation is lower at 4.2% in 2019 (down from 4.3%), at 4.5% in 2020 (down from 4.7%) and remains steady at 4.6% in 2021.pic.twitter.com/8qAndgS689

— SA Reserve Bank (@SAReserveBank)November 21, 2019

The forecast for core inflation is lower at 4.2% in 2019 (down from 4.3%), at 4.5% in 2020 (down from 4.7%) and remains steady at 4.6% in 2021.pic.twitter.com/8qAndgS689

— SA Reserve Bank (@SAReserveBank)November 21, 2019

The forecast of GDP growth for 2019 is revised lower at 0.5% (from 0.6%). The forecasts for 2020 and 2021 have decreased to 1.4% (from 1.5%) and 1.7% (from 1.8%), respectively.pic.twitter.com/NR0PfNeNsC

— SA Reserve Bank (@SAReserveBank)November 21, 2019

Sarb’s MPC met for the last time in 2019 today, and was largely seen keeping benchmark lending rates on hold again at 6.5%, with a weak growth outlook trumping inflation well within the bank’s target of 4.5%, ahead of the decision. 

Earlier this year in July, the Reserve Bank cut interest rates for South Africa down to to 6.5% per annum and chose to keep it unchanged in September. 

WATCH: 

Global GDP is expected to to average 3% in 2019, rising to about 3.4% in 2020 –@KganyagoLesetjapic.twitter.com/FT7ckAyKBn

— SA Reserve Bank (@SAReserveBank)November 21, 2019

Although GDP growth rebounded to 3.1% in Q2, longer term weaknesses in most sectors remains a serious concern –@KganyagoLesetjapic.twitter.com/6Dh6cPsoQH

— SA Reserve Bank (@SAReserveBank)November 21, 2019

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