"The MPC (monetary policy committee) continues to face the difficult dilemma of dealing with upside risks to inflation and a deteriorating domestic economic growth outlook," Reserve Bank Governor
Most economists surveyed by Reuters had expected Marcus to keep rates unchanged after a surprise 50 basis point increase in January to stave off bubbling inflation pressures.
The bank slashed its 2014 growth forecast to 2.1 percent from 2.6 percent forecast in March, adding that growth in the first three months of this year was expected to be the lowest quarterly expansion since the 2009 recession.
Marcus said the rand was also likely to remain vulnerable to changing perceptions about US monetary policy - a factor that helped drive the currency to 5-year lows in January. The rand has recovered from those levels, hitting a year-high last week.
Inflation hit 6.1 percent last month and the bank said it expected it to remain outside its 3-6 percent target band until the second quarter of next year.
The rand firmed marginally after the decision and was trading at 10.3455 to the dollar, 0.2 percent stronger on the day.
"The major reason for this can be attributed to the
"The knock-on effect on the basic cost of living, with increases in the prices of especially food and transport, will put further pressure on the burdened household budgets. Consumers should therefore continue to focus on paying off their debts, put off on luxuries, and save, save, save."
Most Popular Stories
- Islamic State Obliterating Cultural Landmarks in Mosul
- The 2014 Fastest-Growing 100
- 'Lucy's' Super Powers Tops 'Hercules' at Box Office
- VW Site Could Mean Another 2,000 Jobs for Chattanooga
- RV Sales See Highest Increase Post Great Recession
- Report: China to Declare Qualcomm a Monopoly
- Eid al-Fitr Celebrations Mark End of Ramadan
- Oppression of Women Cripples Africa: Obama
- Insecticides Permeate U.S. Food, Water Supply
- Anarchy, Chaos Sweep Across Libya