The South African Reserve Bank’s Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 3.5%. In a statement on Thursday afternoon (20 May) Reserve Bank governor Lesetja Kganyago said that the decision was unanimous, given a ‘balanced’ economic outlook and inflation forecast. Speaking on the wider economy, the governor said that the steady rate of vaccination in many countries has lifted projections for global economic growth and boosted confidence, significantly. However, he said that vaccination rates have not been uniform, with many emerging and developing countries lagging behind. “This uneven vaccination rollout will weigh heavily on some countries more than others and on economic activity in sectors that are more dependent on close contact, such as travel, tourism, hospitality and leisure,” he said. “Until vaccination is widespread and populations develop sufficient immunity to curb virus transmission, it is expected that waves of infection will continue.”
