DATA Download historical data for 20 million indicators using your browser. Policymakers said upside risks to the inflation outlook have increased mainly due to higher oil prices and a weaker rand while the growth outlook remains subdued. Interest Rate in South Africa averaged Trading Economics members can view, download and compare data from nearly countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices.
Learn More Register Login. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds. Click here to contact us. Excerpts from the statement by Governor Lesetja Kganyago:.
The average forecast for is unchanged at 5. The lower turning point, which is expected in the first quarter of , increased from 4. The main upside drivers of these changes are a weaker exchange rate path in in particular, a higher international oil price, and higher average wage growth.
These pressures are offset to some extent by a more favourable food price forecast in in particular. Since the previous meeting of the MPC the rand has depreciated by 3. The rand recorded a weak point of around R Factors that impacted on the rand during the period included the ongoing uncertainty with regard to the outcome of the ANC electoral conference in December; concerns about a faster pace of monetary tightening in the US; the negative reaction to the Medium Term Budget Policy Statement MTBPS ; and speculation regarding the introduction of free higher education in South Africa.
The domestic economic growth outlook remains subdued but positive. Both consumer and business confidence remain low and are also likely to be affected by political developments in December. The output gap is expected to remain negative over the forecast period.
Significant revisions were made to the expected deficits and government debt-to-GDP ratio over the medium term.
This deterioration was mainly a result of significantly lower tax revenues, although there was also a provision for a moderate breach of the expenditure ceiling. The less favourable path of fiscal consolidation could potentially reduce the scope for further monetary policy accommodation. There are very few signs of domestic demand pressures, as reflected in core inflation outcomes.
Although retail sales have surprised on the upside, household consumption expenditure is expected to remain relatively subdued. The economic growth outlook remains constrained, as weak confidence continues to weigh on investment expenditure. Business and consumer confidence are likely to be sensitive to the political outcomes in December.
The MPC assesses the risks to the growth outlook to be on the downside. In light of the high degree of uncertainty prevailing in the economy and the balance of risks, the MPC has decided that it would be prudent to maintain the current stance of monetary policy at this stage.
Accordingly, the repurchase rate remains unchanged at 6. Markets were expecting a 25bps cut. However, policymakers left the door open for further loosening in November, saying it would be appropriate to reassess the data and the balance of risks at the next meeting.
The central bank cut its growth forecast for to 0. Policymakers said that although the inflation outlook has improved over the near term, the longer-term forecast is unchanged, remaining close to the upper limit of the target range. In addition, the rand and domestic bond yields benefited from increased global capital inflows to emerging markets which largely offset the impact of the sovereign credit ratings downgrade.
However, with further ratings decisions imminent, risks remain for a further depreciation against the backdrop of continued global and domestic political uncertainty. Also, domestic growth prospects have deteriorated. The central bank revised down inflation and growth forecasts for this year. Policymakers said the inflation outlook has improved although the exchange rate became a risk due to recent political uncertainties.
Yet, policymakers added that the end of the tightening cycle has been reached. The official interest rate is the repo rate. This is the rate at which central banks lend or discount eligible paper for deposit money banks, typically shown on an end-of-period basis.
This page provides - South Africa Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. South Africa Interest Rate - actual data, historical chart and calendar of releases - was last updated on December of South Africa Inflation Rate Slows to 4. South Africa Leaves Key Rate at 6.
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