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Interest Rate Holds Steady| News by Staff Reporter
Inflationary Pressures on the Horizon
The South African Reserve Bank (SARB) has decided to keep the official interest rate unchanged at 5%.
Reserve Bank Governor Gill Marcus said she was worried about the inflation outlook and the deteriorating value of the rand. The bank's estimate of inflation has increased since the last MPC meeting and is now expected to average 5.8 % in 2013.
GDP growth has also been revised downwards, from 2.9% to 2.6% for this year since their last meeting.
Marcus said that labour unrest, strikes in the mining sector, the rand exchange rate and and food inflation were the main reasons for the revised estimates.
South Africa's credit rating has been downgraded several times in the past few months.