Central Banks

South Africa Holds Rates as Policymakers Hint at Dovish Shift

  • Inflation expectations yet to reflect bank objective: Kganyago
  • MPC split on decision for first time since September
Lesetja KganyagoPhotographer: Waldo Swiegers/Bloomberg
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South Africa’s central bank kept interest rates on hold in a split decision, with two of the six policymakers favoring a cut which could signal a shift toward easing as soon as September.

The monetary policy committee left its benchmark interest rate unchanged at a 15-year high of 8.25% for a seventh consecutive meetingBloomberg Terminal, Governor Lesetja Kganyago said in a virtual press conference Thursday.