The repo rate remains 7%.
Lesetja Kganyago, Governor of the Reserve Bank, announced the Monetary Policy Committee’s (MPC) decision on Thursday afternoon.
Kganyago said he anticipates slower growth through the second and third quarters of this year.
He said the MPC based their decision on four factors, including relatively higher inflation at 5% in June, driven by higher fuel costs.
Moreover, although food inflation eased up, service inflation remains high.
The third factor is the ongoing war in the Middle East, which has disrupted supply chain but economic growth was boosted by investment in artificial intelligence and data centres.
The fourth factor is that consumer confidence fell sharply and weakened.
The unchanged repo rate, means the prime lending rate is at 10.50%.
Picture: Supplied