Economics
South Africa Holds Rate as Recession Trumps Market Turmoil
- Central bank sees inflation risks as being on the upside
- Price-growth trajectory deviating from target’s midpoint: SARB
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The South African Reserve Bank held its key interest rate at a two-year low as the economy struggles through a recession and policy makers warned that investor sentiment toward emerging markets is a risk to the currency and adds to inflation pressures.
The Monetary Policy Committee voted to hold the repurchase rate at 6.5 percent Thursday. Three of the MPC’s seven members votes to increase the rate by 25 basis points, a deviation from the July and May decisions, which were unanimous for holds.