Read: Reserve Bank leaves inte

Read: Reserve Bank leaves interest rate unchanged, inflation a concern

Good news if you find yourself in a spot of debt, the South African Reserve Bank has decided not to change the repo rate, for now.

Read: Reserve Bank leaves inte

Reserve Bank Governor Lesetja Kganyago on Tuesday afternoon announced that South Africa’s repo rate will stick to 7% for now, after the Monetary Policy Committee (MPC) decided as one, that no change to the buy back rate should be made right now.

Kganyago said the MPC would keep a close eye on the medium- to longer-term inflation outlook, adding that there are concerns around an inflation increase in the medium term.

“The MPC remains concerned that the longer-term inflation trajectory continues to be uncomfortably close to the upper end of the target range. The committee retains the view that we may be near the end of the hiking cycle.”

“However, should second-round effects emerge that undermine the longer-term inflation outlook, there may be a reassessment of this view,” he said.

Year-on-year inflation rose to 6.8% in December 2016, up from 6.6% in November an 0.3% higher than the Reserve Bank’s predicted 6.5%.

2017 is set to average at around 6.2%, up from the predicted 5.8% and 2018 should, for now, stick to the 5.5% average inflation mark as set out by the Reserve Bank.

“The peak of the forecast remains at 6.6%, which was recorded in the final quarter of 2016, and this level is now expected to persist in the first quarter of 2017. This deterioration is mainly due to changed assumptions regarding international oil prices, the domestic fuel prices and the outlook for food prices, which more than offset the more favourable exchange rate assumption,” Kganyago said.