This is according to economic analyst André Mellet. His comment follows the announcement made earlier this afternoon by Reserve Bank Governor Lesetja Kganyago that the repo rate will remain unchanged at 7%.
Mellet adds that despite the Bank’s forecasts for GDP growth and inflation looking positive, the economy still very much fluctuates according to the international exchange rate, which is in turn influenced by matters close to home.
“The biggest uncertainty which is also difficult to manage, is the volatility of the exchange rate. And they say the exchange rate is being driven to a large extent by political uncertainty” Mellet adds.