South Africa Holds Rates Again as Inflation Risks Persist
- Three MPC members backed unchanged stance; two wanted increase
- Rand weakens against dollar after the decision is announced
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South Africa’s central bank kept its benchmark interest rate unchanged, while signaling that borrowing costs are likely to stay higher for longer because of persistent inflation risks.
The monetary policy committee maintained the rate at a 14-year high of 8.25% for a second consecutive meeting, Governor Lesetja Kganyago said at a briefing north of Johannesburg on Thursday. That matched the median estimate of 26 economists in a Bloomberg survey.