South African central bank keeps repo rate unchanged

JOHANNESBURG: South Africa’s central bank bucked the trend of emerging markets raising interest rates by keeping its policy level unchanged on Thursday and betting on a long period of low inflation.

The South African Reserve Bank (SARB) left its repo rate at 3.5% in a unanimous decision, saying overall risks to the inflation outlook appeared to be balanced and that pass-through from currency volatility was low.

Emerging-market central banks have come under pressure in recent weeks from global rising yields, weakening currencies and rising inflation strains.