Repo rate steady

The Reserve Bank kept its benchmark repo rate steady at 7% yesterday, as expected, citing concerns about the inflation outlook, even though it cut its growth forecasts. Governor Lesetja Kganyago said consumer inflation was now within the bank’s target of 3%-6% but the longer-term Consumer Price Index trajectory was “uncomfortably close to the upper end” of the range.

The rand firmed slightly in response, while government bonds weakened. – Reuters