South Africa’s central bank left its key interest rate unchanged on Thursday, in line with economists’ expectations.
The Monetary Policy Committee decided to keep the repurchase rate unchanged at 6.5 percent, the South African Reserve Bank Governor Lesetja Kganyago said in a statement.
Four members voted in favor of the move, while three sought a quarter-point hike, the bank said.
Policymakers continue to assess the stance of monetary policy to be accommodative, but remained concerned about the deteriorating inflation outlook, driven mainly by multiple supply-side factors, the SARB noted.
“The approach of the Committee continues to be to look through the first-round effects and focus on the possible second-round effects,” the bank said.
“With risks and uncertainties at higher levels, the MPC will continue to be vigilant and will not hesitate to act should it become necessary.”