South African Reserve Bank Keeps Main Repo Rate on Hold

By Gabriele Steinhauser Features Dow Jones Newswires

The South African Reserve Bank kept its main interest rate on hold Thursday, a day before key ratings-agencies are due to issue decisions on the country's creditworthiness.

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Following the final meeting of the bank's monetary policy committee, Governor Lesetja Kganyago said the repo rate would remain at 6.75%, citing upward pressure inflation from higher oil prices and a weakening currency.

The bank expects Africa's most developed economy will grow 0.7% this year, up slightly from its previous forecast. However, it lowered its estimate for 2018 to 1.2% from 1.3%, and cut its 2019 forecast to 1.5% from 1.7%.

Annual inflation is expected to remain within the 3% to 6% target range for the coming years, reaching 5.2% this year, 5.2% next year and 5.5% in 2019, the bank said.

Write to Gabriele Steinhauser at gabriele.steinhauser@wsj.com

(END) Dow Jones Newswires

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November 23, 2017 08:53 ET (13:53 GMT)