South Africa doesn't foresee a sudden stop of capital inflows as central banks react to the possibility of quantitative easing, says the Reserve Bank.
South Africa's GDP growth has been only 0.7% in the third quarter of 2013, the slowest pace in more than four years.
The Reserve Bank's acknowledgment that a rate hike had been discussed extensively has caused the rand to strengthen and bond yields to go up.
The repo rate will remain unchanged at 5%, meaning that the prime lending rate from banks to consumers will stay at 8.5%, says Gill Marcus.
A accomodative monetary stance should be maintained while inflation allows for it, says the Organisation for Economic Co-operation and Development.
The Reserve Bank seeks to diversify its currency exposure to help protect reserves from a potential rise in US Treasury yields.
South Africa needs to shield itself against capital outflows by boosting its foreign currency reserves, says Reserve Bank governor Gill Marcus.
The cost of manufacturing goods in South Africa rose higher in August than last month, meaning more pressure on consumer prices.
Governor Gill Marcus says the South African Reserve Bank will maintain the current repo rate.
The rand has depreciated as investors gauged that a surge against the dollar, after the US Fed suddenly maintained monetary stimulus, was overdone.
The industry association has said that sales unexpectedly dropped in August compared with figures from a year before.
SA's latest inflation figures, manufacturing updates from China and housing data from the US are some of this week's big items on the data diary.
The Reserve Bank and government are at odds over the most effective remedies to stimulate growth.
SA inflation figures, indicators of growth in Europe and China, US corporate earnings reports and elections in Japan will make for a busy week.
The cost of goods leaving factories rose at a slower pace in May than the previous month, easing pressure on the Reserve Bank to raise interest rates.
The Reserve Bank governor has said policy makers’ core mandate is to control inflation even as economic growth forecasts are set to be lowered.
Large gold shipment from New York to South Africa has set off rumbles in the business world.
Retail-sales growth has slowed in March from a year earlier as inflation has remained close to the top of the central bank's target.