Behind the Reserve Bank’s close call to hold rates
MPC votes 4-3 to keep the repo rate at 6.5% as the economy looks set to grow just 0.7% in 2018
The SA Reserve Bank’s decision to keep interest rates unchanged was as close as it could be, with the monetary policy committee (MPC) separated by a single vote, and probably swayed by another grim economic forecast.
Governor Lesetja Kganyago and his colleagues said the economy would likely grow just 0.7% in 2018, meaning they have cut the outlook by a full percentage point in the past two meetings.
While they still expect expansions of 1.9% and 2% in the next two years, that will now be coming off a much lower base.
If you are already a subscriber, please click on the following link to go to the full article: Grim growth forecast keeps rate hike at bay