The repurchase (repo) rate was kept unchanged at a historically low 3.50% in January, March and May 2021. The SARB’s Monetary Policy Committee (MPC) cited a number of key challenges facing the domestic economy, including the continued negative impact of COVID-19, while the overall risks to the inflation and domestic growth outlook were viewed to be balanced. Domestic short-term money market rates, which declined substantially throughout 2020 until November, increased somewhat following South Africa’s sovereign credit rating downgrade to sub-investment status by both Moody’s and Fitch credit rating agencies at the time of global risk aversion amid a resurgence in COVID-19 infections.
Subscribers to EasyData can download the complete report in PDF format on www.easydata.co.za.