The current repo rate remains at 7,50%.
Lesetja Kganyago, Governor of the South African Reserve Bank, said on Thursday, the 20th March 2025, this is die to various factors, including extreme global uncertainty, the revised growth forecast, inflation and risks associated with economic growth.
The world economy is experiencing extreme levels of uncertainty. Trade tensions have escalated, and longstanding geopolitical relationships are shifting abruptly. In these circumstances, the global economic outlook is unpredictable. Germany has set out plans for large investments in security and infrastructure, which are likely to lift European growth. Meanwhile, China has announced new stimulus measures to bolster demand.
Kganyago said “In the United States, economic sentiment is volatile. The year started with surging stock prices and a stronger dollar. More recently, however, the disruptive effects of tariffs and policy uncertainty have come into focus.”
He said despite growth in the household sector, the overall growth picture was disappointing, with other sectors showing weakness.
Growth for 2024 as a whole was at 0.6%, marginally below forecasts, and slightly worse than in 2023.
The 2025 growth forecast was revised to 1.7% from a projects 1,8%.
We assess that the risks to growth are to the downside.
Price inflation also remains low. Services inflation is somewhat higher, but still below the 4.5% target midpoint.