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Rates stay at 5%

Cape Town – South African Reserve Bank (Sarb) governor Gill Marcus on Thursday announced that the repo rate will remain at 5%.

The repo rate is the interest rate at which the Sarb lends money to commercial banks.

Growth prospects remain fragile amid low consumer confidence, said Marcus.

She said growth is expected to accelerate to 3.8% in 2015.

The Reserve Bank also expects a breach of the inflation target in Q3 of 2013.

On Thursday, data from Statistics South Africa showed inflation standing unchanged at 5.9% year-on-year in April.

On a month-on-month basis, inflation slowed to 0.4% compared with 1.2% in March.

The Monetary Policy Committee is increasingly concerned about the deteriorating outlook for the country, Marcus said.

The outlook for mining sector remains bleak with threats of job losses, high wage demands and strike action, she added.



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