Market analysts anticipate that South Africa's Reserve Bank (SARB) Governor, Lesetja Kganyago, will announce the decision to keep the repo rate unchanged in the central bank’s upcoming meeting on Wednesday.
This expectation is based on a consensus among 19 economists surveyed by Bloomberg, all of whom predict that the central bank will maintain the rate at 8.25%.
Despite a slowdown in inflation that was more significant than initially projected in December, the bank is likely to adopt a cautious approach and refrain from signalling any imminent policy easing measures.
The decision to hold the repo rate steady comes amidst a backdrop of uncertainties in the global economy and risks associated with inflation dynamics.
The SARB’s stance aligns with its commitment to managing inflation within the target range of 3-6%.
The bank's decision to maintain the repo rate at 8.25% is reflective of its strategy to balance economic growth with price stability, especially in the face of ongoing challenges such as power shortages that have impacted business activities in the country.
The upcoming announcement on March 27 is expected to provide further insights into the central bank's assessment of the economic landscape and its outlook on inflation and growth prospects.
Market participants will be closely monitoring the Reserve Bank's communication for any indications of future policy directions and the potential timing of any adjustments to the repo rate.
