first_imgWhile inflation remains slightly above the 6% upper limit set by the South African Reserve Bank, it did not come as a shock as it was below market expectation of 6.2%, according to figures released by Statistics South Africa on Wednesday. 25 May 2012 The Monetary Policy Committee (MPC) has decided to maintain the current monetary policy stance and keep the repurchase rate unchanged at 5.5%, announced South African Reserve Bank Governor Gill Marcus on Thursday. The consumer price index (CPI) increased slightly in April, coming in at 6.1% year-on-year from the 6% recorded in March. The repo rate stands at a more than 30-year low of 5.5%, with the prime interest rate at 9%. The repurchase rate is the rate at which the Reserve Bank lends money to the country’s banks.center_img Marcus was addressing media at the end of the normal three-day MPC meeting. Source: BuaNews Earlier, Nedbank said the MPC would face the challenge of “striking the right balance between supporting a fragile economy in an increasingly uncertain global environment and preventing stubbornly high inflation from becoming entrenched”.last_img