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The Bank has decided to keep the repurchase rate unchanged at 3.5% after reducing the rate by 300 basis points so far this year.
The Governor of the Reserve Bank, Lesetja Kganyago. Image: Renart Toerien / EWN.
JOHANNESBURG – While the Reserve Bank said it is pleased that its monetary policy has helped households survive the coronavirus pandemic, it has revised its forecast for negative growth for this year.
The Bank decided to keep the buyback rate unchanged at 3.5%.
He has lowered the rate by 300 basis points so far this year, but said three out of five members of the Monetary Policy Committee voted to leave the rate unchanged.
Governor Lesetja Kganyago said the growth forecast for this year has been revised.
“A GDP contraction of 8.2% in 2020, compared to the 7.3% contraction expected in July.”
But he said that monetary policy has paid off.
“Monetary policy has eased financial conditions and improved the resilience of households and businesses to the economic complications of COVID-19.”
Monetary policy has eased financial conditions and improved the resistance of households and businesses to the economic implications of Covid-19. However, monetary policy alone cannot improve the economy’s potential growth rate or reduce fiscal risks. # SARBMPCSEP20 pic.twitter.com/ERPfXY4fBI
– Banco de Reserva SA (@SAReserveBank) September 17, 2020
The governor said that global and local inflation is under control, while oil prices remain stable and all that remains is for the country to rebuild.
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