The South African Reserve Bank's Monetary Policy Committee (MPC) on Tuesday decided to keep the repo rate unchanged at 7.0 percent. This is in line with consensus expectations in the marketplace.

Economists react to the interest rate decision:

Carmen Altenkirch, Nedbank:

"It was not a surprise that the MPC decided to keep rates unchanged, although recent rand strength, combined with a further improvement in the inflation outlook, could have tipped the balance in favour of another cut.

Rather the committee opted to wait and see whether recent data, which shows that the domestic economy is beginning to recover, could be confirmed before opting to cut rates further.

"Despite the pause, it is not clear whether this signals the end of the cutting cycle, as it is quite possible that the recovery could disappoint and prompt further easing. We still expect one further 50 basis point cut this cycle."

Freddie Mitchell, Efficient Group:

"There were no surprises. The economy is still under pressure and the inflationary risks are well balanced, just as the governor said.

"We welcome the fact that rates were left unchanged."

Mike Schussler, Economists.co.za:

"This decision was expected, loads of people had expected this decision, so there is no problem with that. The latest inflation data, however, may give us hope going forward.

"I don't think we will see another change again until the middle of next year, when we will look for positives again ... there's a World Cup coming."

Peter Attard, Nomura:

"The SARB inflation forecast has not changed since the last meeting given the stronger rand yet a higher oil forecast. Overall, Mboweni was being very balanced on the outlook. It appears they do not want to have negative real interest rates and are happy with the inflation and growth outlook from here.

"So with a bubbling up of inflation into year-end, it seems unlikely they will cut rates from here and we see rates unchanged until the end of next year assuming a sustainable recovery in economy."