The Reserve Bank’s Monetary Policy Committee has decided to keep the repo rates unchanged at 7.5% and the prime lending rate also unchanged at 10.5%.
The announcement is in line with the analysts’ expectations. Despite reduced inflation expectations, the bank was expected to hold its rate-cutting cycle this time around. The final cut is only expected at its last meeting in November.
In July, the MPC decided to cut rates by 25-basis points taking the repo rate to 7.5% and the prime lending rate to 10.5%.