SA keeps interest rates static till Nov

South African Reserve Bank governor Lesetja Kganyago

Commercial bank related interest rates will remain unchanged in South Africa after the deciding committee opted to keep the benchmark rate at 8,25%.

This sees the prime lending rate remain at 11,75%, higher than Namibia at 11,50%.

Announcing the decision, South African Reserve Bank governor Lesetja Kganyago said since the last meeting, near-term prospects for the global economy are broadly unchanged and inflation has eased over the course of the year, therefore, it was prudent to keep rates as is.

He, however, hinted at a coming hike, citing that a further slowdown in inflation looks “less certain”.

“Given uncertain fuel and food price inflation, considerable risk still attaches to the forecast for average salaries. Sticky inflation implies that average interest rates in major economies will remain high. As a result, tighter global financial conditions are likely to persist, raising the risk profile of economies needing foreign capital,” he said.

Statistics SA said yesterday headline annual consumer inflation ticked up to 4,8% in August, up from 4,7% in July, after four consecutive months of decline.

Namibia’s inflation for August came in at 4,7%.

The next annoucement from South Africa will be on 23 November and 25 October for the Bank of Namibia.

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