The Monetary Policy Committee has decided to keep the repurchase rate at its current level of 8.25% per year. Reserve Bank Governor Lesetja Kganyago is currently briefing the media on the committee’s outcomes.
Economists had predicted that the repo rate would remain unchanged following the committee meeting.
“Our food price inflation forecast for 2023 remains high and largely unchanged at 10.4%. The forecast for 2024 remains unchanged at 5.2%,” argues Kganyago.
The Governor says electricity price increases pose inflation risks due to inadequate energy supply. “Load-shedding and logistics issues could impact business costs and living expenses.” He further claims that uncertainty in fuel and food prices adds risk to average salary forecasts.