The South African Reserve Bank (Sarb) has left its benchmark repo rate unchanged at 6.75% following its latest Monetary Policy Committee (MPC) meeting, governor Lesetja Kganyago announced on Thursday.
It took a cautious and steady approach, as widely expected, in the wake of the world being rocked by the Iran war in the Middle East since the start of the month, which has seen Brent oil prices spiral to over $100 a barrel.
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Sarb expected to sit tight as oil spike reshapes inflation outlook
How SA will feel the Iranian conflict
April fuel prices set to rocket
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The spike in oil prices have raised concerns about global inflation and the risk of a recession. In SA, fuel prices are expected to rocket in April by between R5 and R9 a litre for petrol and diesel, respectively, unless government announces any mitigation measures in the next few days.
The Sarb’s repo rate decision means SA’s prime lending rate for commercial banks remains steady at 10.25%.
Read: Iran war oil shock threatens to disrupt Africa’s easing cycle
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