South Africa’s central bank kept its benchmark repo rate at 6.75 percent on Thursday, in-line with expectations, citing increased risks to inflation posed by currency weakness, possible credit downgrades and political jostling.
“The lead-up to the African National Congress national elective conference and its uncertain outcome is also likely to continue to weigh on the currency,” governor Lesetja Kganyago said, referring to the ruling party’s conference in December to elect a successor for President Jacob Zuma as its head.
Kganyago said weak fiscal forecasts in the national budget announced in October had also reduced scope for rate cuts.
Reporting by Olivia Kumwenda-Mtambo and Alex Winning; Writing by Mfuneko Toyana; Editing by James Macharia
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