The SA Reserve Bank announced that the lending rate to banks remains the same at 6.5%. The prime lending rate will remain at 10%.
The bank’s view of growth in the country for 2018 has been adjusted downwards to 1.2% which is still no motion of confidence in its own government.
The Reserve Bank also expressed concern about salary hikes that are higher than the inflation rate while productivity is decreasing.
The rise in public service salaries has been identified by the bank as the main cause of rising inflation.
The original article can be read in Afrikaans on Die Vryburger