The SA Reserve Financial institution’s financial coverage committee (MPC) disclosed that regardless of the impact of the pandemic, the rate of interest would stay unchanged at 3.5% on Thursday.
The Financial institution additionally revised its GDP forecasts.
It revealed that it’s anticipating the economic system to shrink 8.2% in 2020, in comparison with the 7.3% contraction forecast in July.
It additionally expects the economic system to develop by 3.9% in 2021 and by 2.6% in 2022.
The financial institution had slashed repo charges 5 occasions this 12 months in a bid to help households and companies by the devastating impact of the pandemic and lockdown
This stays the bottom coverage price the financial institution has applied in about 47 years.
The Financial institution’s headline client worth inflation forecast averages 3.3% in 2020 which is decrease than beforehand forecast at 4% in 2021 and at 4.4% in 2022.
The MPC determination on the curiosity comes after President Cyril Ramaphosa introduced on Wednesday night time that SA will transfer to degree 1 lockdown rules from Sunday’s midnight.
This new transfer might result in economic system restoration.