South African Reserve Bank (Sarb) governor, Lesego Kganyago has announced that the repo rate will remain unchanged.
The country has been battling the impact of the Covid-19 lockdown regulation with government and investors trying to find ways to kick-start economic activity again.
The repo rate, which is the rate at which the Sarb lends money to commercial banks, has already reached record lows in 2020.
On Thursday, Kganyago said the fresh spread of the Covid-19 virus and reimposed lockdowns “will extend the time needed for economies to get back to pre-pandemic activity levels.”
He noted: “Monetary policy has eased financial conditions and improved the resilience of households and firms to the economic implications of Covid-19. However, it cannot on its own improve the potential growth rate of the economy or reduce fiscal risks.”
You can watch the Sarb announcement below: