South African central bank maintains key rate in split decision

Economists had predicted a close call between a ‘hold’ decision and a 25 basis point cut. The Monetary Policy Committee’s decision was split, with four members preferring to keep rates on hold while two favored a cut. Ultimately, the South African central bank decided to maintain its key interest rate at 7%. This decision highlights the uncertainties surrounding the country’s economic conditions and the balancing act the central bank must perform to support growth while managing inflation. The central bank’s decision took into account various factors such as inflation expectations, economic growth projections, and the impact of external factors on the South African economy.