Economics
South Africa Holds Rate But Bank's Model Points to Looming Cut
- MPC reduced its GDP growth forecast to 1% from March’s 1.3%
- Projection model sees a 25 basis-point cut by end-March 2020
Photographer: Waldo Swiegers/Bloomberg
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The South African Reserve Bank has frozen its key interest rate for now, but a cut could be on the cards, with some policymakers voting for reductions for the first time in 14 months as they slashed the nation’s economic-growth forecast.
While the Monetary Policy Committee decided to maintain the repurchase rate at 6.75%, two of the five MPC members favored a 25 basis-point cut, Governor Lesetja Kganyago said Thursday from the capital, Pretoria. The decision was in line with expectations of all 25 economists in a Bloomberg survey.