South Africa’s Central Bank Holds Interest Rates Steady

• South Africa’s central bank keeps benchmark interest rate at 8.25%, a 2009 high, for the fourth consecutive meeting.
• Decision to maintain rates comes amidst rising unemployment and national elections looming.

The South African Reserve Bank (SARB) has held its benchmark interest rate at a high of 8.25%, a level not seen since 2009, amidst ongoing inflation concerns. This decision was made during a briefing north of Johannesburg on Thursday, where Governor Lesetja Kganyago indicated that the battle against inflation is far from over. Kganyago argued the need for a restrictive policy stance, given the serious risks to the inflation trajectory from both global and domestic sources.