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Breaking News: SARB keeps interest rates unchanged

Gill Marcus the South African Reserve Bank (Sarb) Governor, has stated that interest rates will remain unchanged. The repo rate will remain fixed at 5.75% per annum in order to support weak activity in the local economy, despite inflation concerns and the weak rand.

The Sarb raised rates by 25 basis points in July 2014 after inflation extended, beyond the 3%-6% target, to 6.6% in May and June 2014. Despite high inflation, economic growth has remained lacklustre. Marcus added that the 'domestic economic growth outlook remains weak'.

  • The bank's forecast for 2014 GDP growth was revised to 1.5% with risks on the downside.
  • GDP predictions are also down for the next two years.
  • Marcus said divergent growth outlooks in the developed world was likely to drive policy decisions.
  • She said the rand was expected to remain sensitive to sentiment regarding US policy and geopolitical risk.

South Africa (ZAR) Mid-market rates: 2014-09-18 13:59 UTC

USDZAR 11.0934
GBPZAR 18.1720
EURZAR 14.2967
CADZAR 10.1170
AUDZAR 9.9385
NZDZAR 9.0046
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