South Africa keeps rate at 6.75%, says risks to inflation rising

PUBLISHED: Thu, 23 Nov 2017 15:57:48 GMT

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.

Photo: Flickr.

“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.

Sign Up for Our Newsletter Daily Update
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.