As expected, repo rates left unchanged at 5.5%

The South African Reserve Bank (SARB) is South Africa's central bank. The SARB's vision is based on maintaining the growth of the South African economy. The basis for this lies in the market system, competition, justice and balanced economic development. The mission of the South African central bank is to achieve and maintain price stability and protect the value of the currency, the Rand. The SARB's monetary policy is based on an inflation target which currently works with a range of 3 to 6 percent on a rolling basis (CPI).

SARB repo (interest) rate

When reference is made to the South African interest rate this often refers to the repo rate. This base rate is also called the repurchase rate. In order to counter inflation, excessive growth of the available funds (money) must be prevented. To this end the commercial banks must keep interest rates at a level which prevents excessive growth in bank lending. In order to achieve this the central bank sets the level of the repo (repurchase) rate, thereby influencing the interest rates that banks pass on to their customers for products such as mortgages, business and personal loans and savings.

The following Statement was issued by Gill Marcus:

2011-11-10: Statement of the Monetary Policy Committee
Issued by Gill Marcus, Governor of the South African Reserve Bank Since the previous meeting of the Monetary Policy Committee, there has been no meaningful progress to resolving the sovereign debt... Read more

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