South African Reserve Bank Maintains Main Repo Rate at 8.25%
By Alexandra Wexler
JOHANNESBURG--The South African Reserve Bank on Wednesday maintained its main repo rate at 8.25% in an effort to keep inflation in check amid a continuing electricity crisis, elevated food prices and logistical constraints at the country's rails and ports.
The SARB kept the rate on hold for the fifth consecutive meeting.
The bank confirmed that Africa's most-developed economy grew 0.6% in 2023, despite worse-than-expected growth in the fourth quarter of just 0.1%, amid rolling nationwide blackouts as well as logistical problems at ports and railways.
Near-constant breakdowns of South Africa's aging coal power plants and a lack of money to buy diesel for emergency generators have led to blackouts of up to 11-and-a-half hours a day, hampering economic growth.
SARB Governor Lesetja Kganyago said the blackouts shaved 1.5 percentage points off GDP growth in 2023, and would take 0.6 percentage points from GDP growth this year.
In 2024, the SARB expects growth of 1.2%, unchanged from the bank's January estimate.
Write to Alexandra Wexler at alexendra.wexler@wsj.com
(END) Dow Jones Newswires
March 27, 2024 09:41 ET (13:41 GMT)
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