The SA Reserve Financial institution’s financial coverage committee (MPC) disclosed that regardless of the impact of the pandemic, the rate of interest would stay unchanged at 3.5% on Thursday.
The Financial institution additionally revised its GDP forecasts.
It revealed that it’s anticipating the economic system to shrink 8.2% in 2020, in comparison with the 7.3% contraction forecast in July.
It additionally expects the economic system to develop by 3.9% in 2021 and by 2.6% in 2022.
The financial institution had slashed repo charges 5 instances this yr in a bid to help households and companies by way of the devastating impact of the pandemic and lockdown
This stays the bottom coverage fee the financial institution has applied in about 47 years.
The Financial institution’s headline shopper worth inflation forecast averages 3.3% in 2020 which is decrease than beforehand forecast at 4% in 2021 and at 4.4% in 2022.
The MPC resolution on the curiosity comes after President Cyril Ramaphosa introduced on Wednesday evening that SA will transfer to stage 1 lockdown rules from Sunday’s midnight.
This new transfer may result in economic system restoration.