South African Reserve Bank Keeps Main Repo Rate on Hold

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.

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

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