South Africa's Reserve Bank has left its benchmark repo rate unchanged at 7% citing inflationary pressures and subdued growth. The prime lending rate will stay at 10.5%. Rates have gone up 75 basis points since the beginning of the year, hitting cash strapped consumers hard. Unemployment has risen to its highest level on record adding to consumer woes. The reserve bank also raised its concerns over the weak economy reducing its growth forecast for 2016 down to 0.6% from 0.8%, in line with the IMF's projections. It pointed to upside risks to inflation driven by prolonged currency weakness and persistent drought conditions which are pushing food prices higher
