The South African Reserve Bank Governer has announced that the repo rate will remain steady at 6 per cent.
Following the stunted growth outlook in South Africa, the Monetary Policy Committee (MPC) has put a halt on hiking rates. This decision was influenced by depreciating exchange rates, contractions in the mining, manufacturing and the agricultural sector.
Governor of the Reserve Bank, Lesetja Kganyago said domestic financial markets were not immune to global economic volatility.
In a question and answer session, Kganyago assured that the MPC was not influenced by the US Fed decision but took into consideration the context of South Africa.
“The domestic economic outlook has deteriorated following the surprise contraction in the second quarter of the year,” he said.