South African central bank maintains key rate in split decision

PRETORIA (Reuters) – South Africa’s central bank kept its key interest rate unchanged at 7% on Thursday.

Economists polled by Reuters 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 favoured a cut of 25 basis points.

Headline inflation in Africa’s largest economy unexpectedly slowed to 3.3% year on year in August from 3.5% in July, staying near the bottom of the central bank’s 3%-6% target range.

At its last policy meeting in July, the South African Reserve Bank trimmed its policy rate by 25 basis points and said it would aim for the bottom of its target range, 3%, whereas before it had aimed for the middle, 4.5%.

(Reporting by Anathi Madubela