Data provided by McGregor BFA
All data is delayed
Loading...
See More

Interest rates on hold at 5%

Mar 20 2013 12:18 Fin24
Sarb governor Gill Marcus. (AFP)

Sarb governor Gill Marcus. (AFP)

Related Articles

Rand flat, Sarb to keep rates on hold

Economic growth seen subdued in 2013

8% hike bad for Eskom, good for rates

Marcus: Recent rand weakness overdone

Marcus worries about rand

Marcus remarks show inflation is winning

 
Cape Town -  The South African Reserve Bank (Sarb) left its benchmark interest rate unchanged at 5.0% on Wednesday, citing concerns about rising food prices, inflation and a depreciating rand exchange rate in a period of slowing growth.

The prime lending rate thus remains at 8.5%.

The decision follows an unexpected surge in headline consumer inflation to 5.9% year-on-year in February, from 5.4% in January.

Data from Statistics South Africa released earlier Wednesday also showed inflation increasing 1.0% on a month-on-month basis in February compared with 0.3% in January. Economists had expected inflation to come in at 5.6% year-on-year and 0.8% month-on-month in February.

Sarb governor Gill Marcus expressed concern about the affect of the Eskom tariff hike on inflation, with the central bank estimating inflation to average 5.9% in 2013.

The rand exchange rate is still posing the biggest threat to inflation, she said.

Marcus said the rand is expected to remain volatile amid local and global turmoil.

The bank forecast growth for 2013 at 2.7%, below potential growth of 3.3%, Marcus said.

Marcus said labour strife in the mining sector still poses growth risks.

She said the petrol price remains an upside risk. The pump price of petrol increased by R1.24 a litre since the beginning of the year and is expected to go up again in April.







Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

sarb  |  gill marcus  |  interest rates  |  inflation  |  rand  |  good news
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
9 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...