The repo rate will remain unchanged at 5.75 percent, SA Reserve Bank governor Lesetja Kganyago said on Thursday.
The prime lending rate, the interest charged by banks to consumers, remains steady at 9,25 percent.
According to the Bank’s latest forecasts, inflation is now expected to average 4.8% in 2015, compared with the previous forecast of 3.8%.
A first quarter average of 4.2 percent is now projected as the low point, compared with 3.5 percent previously. The strong base effects in the first quarter of 2016 are expected to result in a temporary one-quarter breach of the inflation target during that quarter, at 6.7 percent, with the average for the year expected to measure 5.9% compared with 5.4% previously.
Inflation is expected to average 5.5% in the final quarter of the year, compared with the previous forecast of 5.3%.