SARB keeps the interest rate unchangedFriday, 30th March 2012
The South African Reserve Bank kept the repurchase rate unchanged at 5.5% yesterday, 29 March 2012, for a record 16 months, as they continue to play a balancing act between inflationary pressures and the expected economic growth rate. The bank unexpectedly raised its forecast for this year to 3% growth in output from 2.8% previously. South Africa's treasury is forecasting 2.7% growth this year and the International Monetary Fund just 2.5%. The rand extended its decline after the rate announcement. Inflation, which slowed to 6.1% in February, will probably peak at 6.5% in the second quarter according to SARB Governor Gill Marcus. The Bank has forecast inflation to reach 5.2% by the end of 2013 and average 5.6% in the first quarter of 2013.