The South African Reserve Bank’s Monetary Policy Committee decided to leave the repo rate at 6.5% at its meeting today (13 May 2010). The maintenance of the current repo rate was widely expected. Sarb’s consumer price index (CPI) targets are also very much on track.

Sarb’s governor, Gill Marcus said that, ‘the CPI forecast of the South African Reserve Bank (the Bank) indicates a slightly improved outlook compared with that presented at the previous meeting of the MPC, with a lower projected inflation for 2010 and 2011. CPI inflation is still expected to reach a low point in the third quarter of 2010 when it is forecast to average 4,7%. Inflation is then expected to increase moderately, and remain within the inflation target range until the end of the forecast period, which has been extended to the end of 2012, at 5,3%.’