South African Reserve Bank (Sarb) governor Lesetja Kganyago has announced that the repo rate will remain unchanged at 6.5%.
This comes after Stats SA announced that the headline consumer price index fell to 3.7% in October, down from 4.1% the month before.
The Bank’s monetary policy committee (MPC) left the repo rate at 6.5%, unchanged since the last cut in July.
Reserve bank left its inflation forecast unchanged since its September meeting — estimating inflation will average 4.2% in 2019, 5.1% for 2020, and 4.7% for 2021.
It did however revise its forecast for core inflation — or inflation excluding food, fuel and electricity — down to 4.2% in 2019, from 4.3%. Core inflation in 2020 is now expected to be 4.5%, down from 4.7% and while it is expected to remain steady at 4.6% for 2021.
Today's statement also comes after announcements last month by the European Central Bank to keep its rates at historic lows, and the decision by the US Federal Reserve to cut rates for a third time this year. Central banks in advanced economies have been providing more monetary policy accommodation, but further easing appears less likely, Kganyago said.