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South Africa's Central Bank has retained its benchmark repo rate unchanged at 7 percent on Thursday, with a weak economic growth outlook balancing out its concerns about the inflation trajectory.
Inflation is expected to average 6.4 percent this year, slightly down from an earlier forecast of 6.6 percent, the central bank said, in line with its target of between 3-6 percent.
"Given improvements in the inflation forecast, the weak domestic economic outlook and the assessment of the balance of risks, the MPC has unanimously decided to keep the repurchase rate unchanged," Governor Lesetja Kganyago told a news conference.
"The MPC is of the view that should current forecasts transpire, we may be close to the end of the tightening cycle," Kganyago said.
Kganyago, however, said the MPC was still concerned about the overall inflation trajectory, which remained in the upper end of the inflation target range.
On Tuesday, The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) also retained all key indicators.
The monetary policy committee retains MPR at 14%, CRR at 22.5% and Liquidity Ratio at 30%
Inflation is expected to average 6.4 percent this year, slightly down from an earlier forecast of 6.6 percent, the central bank said, in line with its target of between 3-6 percent.
"Given improvements in the inflation forecast, the weak domestic economic outlook and the assessment of the balance of risks, the MPC has unanimously decided to keep the repurchase rate unchanged," Governor Lesetja Kganyago told a news conference.
"The MPC is of the view that should current forecasts transpire, we may be close to the end of the tightening cycle," Kganyago said.
Kganyago, however, said the MPC was still concerned about the overall inflation trajectory, which remained in the upper end of the inflation target range.
On Tuesday, The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) also retained all key indicators.
The monetary policy committee retains MPR at 14%, CRR at 22.5% and Liquidity Ratio at 30%
