Reserve Bank governor Lesetja Kganyago said growth in the South African economy was being threatened by global market conditions including the trade war between the US and China.
The world’s two largest economies were locked in an escalating trade battle with tit-for-tat tariffs being imposed by the two sides.
While speaking in Pretoria on Thursday afternoon, Kganyago announced that the repo rate would remain unchanged at 6.75%.
He said the US-China spat, along with other local factors, continued to hamper prospects of economic growth.
“Weak business confidence, possible electricity supply constraints and high debt levels in certain state-owned enterprises will continue to limit investment prospects. The escalation of trade tensions could significantly impact global trade with likely negative impacts for SA as a small open economy,” he said.