23/11/2017 16:14 SAST | Updated 23/11/2017 16:14 SAST

SARB: Repo Rate Remains Unchanged -- For Now

But a petrol price increase is likely in December.

Rogan Ward / Reuters

Cape Town - The monetary policy committee (MPC) of the SA Reserve Bank (SARB) has decided to leave the repo rate unchanged at 6.75%, Fin24 reported.

The prime lending rate, therefore, stays at 10.25%. The repo rate is the interest rate at which the SARB lends money to commercial banks.

SARB governor Lesetja Kganyago said the upcoming ANC leadership election meeting in December is likely to weigh on the rand.

Kganyago said of particular concern is the decline in the FNB/BER civil construction index. The employment outlook also remains worrisome. He also pointed to weak consumer confidence. International oil prices pose an upside risk. A petrol price increase is likely in December.

He also pointed to the impact a ratings downgrade could have on the exchange rate.