Publications
Partners
Johannesburg - The South African Reserve Bank (Sarb) has
left the repo rate at a historical low of 5.5%, in an indication it is still
concerned at the sluggishness of the SA economy.
It has left rates unchanged this year, after 650 basis points of cuts till the end of 2010.
Sarb's monetary policy committee would have weighed a range
of data including the consumer price index, which has risen to 5.7%. The bank
has warned of the risks of rising inflation, due largely to higher fuel and
food prices.
On Wednesday investors were spooked by a ratings outlook
downgrade of the domestic economy by Moody's ratings agency.
That prompted speculation that rates may be cut to stimulate the economy.
