The Monetary Policy Committee has kept South Africa’s key interest rate steady at 8.25% for a second consecutive meeting.

This was in line with many economists' predictions, and comes after annual consumer price inflation ticked up slightly to 4.8% in August from 4.7% in July. That kept CPI within the Reserve Bank’s target range of 3% to 6%, but risks to the inflation outlook are assessed to the upside, said Lesetja Kganyago, governor of the Reserve Bank.

The decision to keep interest rates on hold wasn’t unanimous, with two members of the MPC voting to hike the interest rate.

While consumers will be relieved that their loans won’t cost them more, there’s still a chance that the MPC will raise rates at its November meeting. 

Domestic food price inflation is still elevated, Kganyago said, and there’s a high risk that food inflation will pick up again next year.

The Reserve Bank’s gross domestic product outlook was unchanged, with it forecasting 1% growth this year and 1.1% next year.