SARB to keep repo rate unchanged and monitor inflation – economists

The South African Reserve Bank (SARB) is likely to keep the repurchase (repo) rate unchanged at 6.75% on Thursday while retaining a cautious policy stance given upside risks to the inflation outlook, economists have said. In March, the SARB's monetary policy committee (MPC) unanimously decided to keep the repo rate at which it lends to commercial banks unchanged as it cut its economic growth forecast. The MPC however warned of inflationary pressure in the months ahead stemming from increases in electricity tariffs, fuel prices and the rand exchange rate.